US court approves 'social casino' $415 mln class settlement

DoubleDown Interactive

02/06/2023 18:04

By Mike Scarcella
       June 2 (Reuters) - A U.S. judge on Thursday approved a
$415 million class-action settlement resolving claims that
online gaming companies DoubleDown Interactive LLC and
International Game Technology PLC  IGT.N  violated Washington
state gambling laws and consumer protection provisions.
    In his ruling, U.S. District Judge Robert Lasnik in Seattle
federal court called the resolution "fair, reasonable, and
adequate." He issued his final approval order after a hearing in
the case, concluding more than four years of litigation.
    Online consumers alleged "social casino" games developed by
the defendants "constitute unlawful gambling under Washington's
gambling laws." The settlement was the latest in a series of
related cases.
    International Game Technology, based in the U.K., and
DoubleDown have denied any liability. They argued that the
plaintiffs' claims "rest on novel and untested interpretations
of Washington's gambling laws."
    The games are free to play, but users pay for additional
chips. The lawsuit said consumers wager to acquire more chips
that they otherwise would need to buy.
    Tens of thousands of class members "purchased and lost
chips" by wagering at DoubleDown Casino, the plaintiffs' lawyers
alleged. The class attorneys argued users were entitled to
pursue their losses under a Washington state law.
    DoubleDown and its lawyers on Friday did not immediately
respond to messages seeking comment. Lawyers for International
Game Technology did not immediately respond to a similar
request.
    Lasnik said seven class members opted out of the settlement,
but there were no formal objections to the deal.
    Plaintiffs' lawyer Todd Logan at Edelson, the firm that was
leading the case, on Friday said the firm's social-casino
litigation overall has led to $651 million for clients and class
members.
    Logan said in the latest settlement "many class members
stand to receive, individually, hundreds of thousands of
dollars."
    Lasnik awarded nearly $121.5 million in legal fees to lead
class attorneys at Chicago-based Edelson.
    Lasnik's fee award amounted to about 29% of the settlement
fund. The plaintiffs' lawyers had said they would seek no more
than 30% for fees.
    The litigation was "risky, novel, and hard-fought," Lasnik
said in his order, and so he approved a request for fees that
went beyond a 25% benchmark in Washington and other states
comprising the 9th U.S. Circuit Court of Appeals.    
    
    The case is Benson et al v. DoubleDown Interactive LLC et
al, U.S. District Court, Western District of Washington, No.
2:18-cv-00525-RSL.
    For Benson: Jay Edelson, Rafey Balabanian and other lawyers
from Edelson; Cecily Jordan of Tousley Brain Stephens
    For DoubleDown: Jaime Drozd Allen of Davis Wright Tremaine
    For International Game Technology: Lauren Case of Duane
Morris, and Adam Pankratz of  Ogletree, Deakins, Nash, Smoak &
Stewart
    
  

 (Reporting by Mike Scarcella; editing by Leigh Jones)
 ((Mike.Scarcella@thomsonreuters.com;))