Settlement milestone: US Court approves $415 million class action for ‘Social Casino’ case
In a significant ruling, a U.S. judge granted the green light to a massive $415 million class-action settlement, putting an end to the claims that DoubleDown Interactive LLC and International Game Technology PLC (IGT.N), two prominent online gaming companies, had run afoul of Washington state gambling laws and consumer protection provisions.
Judge’s approval of settlement marks the end of years-spanning lawsuit
Delivering his verdict from the esteemed Seattle federal court, U.S. District Judge Robert Lasnik hailed the resolution as “fair, reasonable, and adequate.” After an extensive hearing that marked the culmination of over four years of intense legal battles, Judge Lasnik issued the final approval order, bringing a long-awaited conclusion to this complex litigation.
The genesis of this case can be traced back to 2018, a year following the notorious Kater V. Churchill Downs ruling by the 9th Circuit Court of Appeals. This landmark decision exposed the illicit casino games offered by Big Fish Games, a social gaming site affiliated with Aristocrat Leisure. Beyond mere chip purchases, this platform harboured a shadowy black market where “chips of no value” were traded, leading to the discovery of illegal gambling activities within Washington state.
Claiming that the “social casino” games developed by the defendants constituted unlawful gambling under Washington’s gambling laws, online consumers raised their voices, prompting a series of interconnected legal battles. The recently approved settlement stands as the latest chapter in this ongoing saga.
International Game Technology, a U.K.-based company, and DoubleDown have adamantly denied any liability, countering the plaintiffs’ claims with the argument that these assertions rely on untested and innovative interpretations of Washington’s gambling laws. Their defence maintains that the plaintiffs’ allegations lack a solid legal foundation, challenging the very core of the case at hand.
The allure of free gameplay hides a subtle catch as users delve into the world of online gaming. Once immersed, the desire for more chips prompts them to make payments, an optional expense that becomes increasingly tempting. It is this intricate dynamic that forms the basis of a lawsuit, with consumers contending that they engage in wagers to acquire additional chips they would otherwise need to purchase.
From silence to settlement
According to the allegations put forth by the plaintiffs’ lawyers, tens of thousands of class members found themselves in a cycle of “purchasing and losing chips” as they engaged in wagers at DoubleDown Casino. Asserting their rights under Washington state law, the class attorneys argued that users should be empowered to seek recompense for their losses.
Seeking insights and clarifications, messages were sent to DoubleDown and its legal team, but as of Friday, no immediate responses were received. Similarly, requests for comments from the lawyers representing International Game Technology were met with silence, leaving the public eager for further discourse.
While the settlement garnered widespread acceptance, seven class members chose to opt out, signalling their reservation regarding the proposed resolution. However, their absence did not lead to any formal objections to the deal, paving the way for its eventual approval.
Todd Logan, the plaintiffs’ lawyer from Edelson, the firm leading the case, shared an extraordinary figure that underscores the impact of their social-casino litigation. Overall, their efforts have resulted in an impressive $651 million in financial compensation for clients and class members. In the latest settlement, Logan revealed that many class members stand to receive substantial individual pay-outs, potentially reaching hundreds of thousands of dollars.
Recognizing the arduous legal battle fought by the lead class attorneys at the esteemed Chicago-based firm Edelson, U.S. District Judge Lasnik granted them a substantial sum of approximately $121.5 million in legal fees. This commendable award amounted to approximately 29% of the settlement fund, a figure that aligns closely with the plaintiffs’ lawyers’ earlier commitment not to seek more than 30% in fees.
In his order, Judge Lasnik acknowledged the demanding nature of the litigation, describing it as “risky, novel, and hard-fought.” Considering the exceptional efforts exerted by the legal team, he deemed it fitting to approve their request for fees that surpassed the typical 25% benchmark observed in Washington and other states encompassed by the 9th U.S. Circuit Court of Appeals.
The case, known as Benson et al v. DoubleDown Interactive LLC et al, was adjudicated in the U.S. District Court for the Western District of Washington, bearing the docket number 2:18-cv-00525-RSL.
Representing the interests of the plaintiffs, Jay Edelson, Rafey Balabanian, and other accomplished lawyers from Edelson played instrumental roles in the proceedings. On the opposing side, the legal counsel for DoubleDown comprised Jaime Drozd Allen of Davis Wright Tremaine, while Lauren Case of Duane Morris and Adam Pankratz of Ogletree, Deakins, Nash, Smoak & Stewart lent their expertise to International Game Technology’s defence.
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