Computer hardware manufacturer NZXT and its business partner Fragile have agreed to pay $3.45 million to settle a class-action lawsuit challenging their Flex PC rental service. The preliminary settlement was filed in a California District Court on April 7th.

The lawsuit was filed as a civil RICO case against the companies' Flex program, which allowed customers to rent gaming computers rather than purchase them outright. The legal action accused the companies of deceptive practices related to the rental service.

Under the terms of the settlement, NZXT will forgive up to $5,000 in debt for customers who participated in the Flex program. The agreement also allows customers to keep their rental PCs rather than returning them to the company.

The Flex program was marketed as an alternative way for consumers to access high-end gaming PCs without the upfront costs of purchasing the hardware. However, the lawsuit challenged various aspects of how the rental service operated and was presented to customers.

The settlement requires court approval before it becomes final. NZXT is known primarily for manufacturing PC cases, cooling systems, and other computer components, and had expanded into the rental market with the Flex program.