May 08, 2024 View in Browser

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A surge of lawsuits against video game companies could signal the beginning of a new wave of mass tort litigation. In this update, we’re taking a closer look at lawsuits brought on behalf of minors who allegedly developed video game addiction and other mental health issues; the suits are backed by a handful of powerhouse attorneys who have secured billions of dollars in mass tort verdicts.

— Mike Neighbors, Editor, Law.com Radar

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Signal Strength

5

Radar Trend Scale

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Total Cases

6

from Apr. 1 - 30 

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Monthly Average

< 1

 

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Surge

934%

 

Litigation Surge - Gaming & Esports | Product Liability

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What's Happening

Major video game developers and tech companies were hit with a barrage of product liability lawsuits last month alleging that their games are harmful to minors. At least six federal cases were filed against Fortune 500 gaming companies and tech giants on behalf of minors who allegedly developed video game addiction or 'internet game disorder'; the suits contend that the companies use feedback loops, reward systems and in-game 'microtransactions' to ensure that users keep playing longer and spend more money. Several major companies are under fire including Activision Blizzard, Apple, Epic Games, Microsoft and Nintendo. Who's leading the charge? Half the suits were launched by Bullock Ward Mason and attorney Rick Meadow.

Why Now?

The shift from traditional gaming consoles to online gaming has paved the way for two new revenue drivers which plaintiffs allege are causing video game addiction: microtransactions and data collection.

Microtransactions are in-game purchases for new features like weapons, items and even shortcuts; according to the suits, this model encourages gamers to play for longer and continue making purchases in order to advance in the game. Plaintiffs allege that companies' failure to disclose info about microtransactions prevents parents from making informed decisions before purchasing games for their children.

Data collected about individual players allows developers to customize gaming experiences and use targeted advertising to increase playing time. For instance, companies use players' social media info to advertise microtransactions based on specific interests—and in multiplayer mode, a player who lacks a useful item may be matched with a player who possesses that item, encouraging the first player to purchase the item to gain a future competitive advantage.

Formidable Advocates

► Before co-founding Bullock Ward Mason in 2022, Danielle Ward Mason was a partner at Milberg Coleman Bryson Phillips Grossman and led the firm's talc litigation practice, securing nearly $1 billion in verdicts against Johnson & Johnson; now she’s leading the charge on behalf of women who developed uterine cancer after using chemical hair relaxers. Co-founder Tina Bullock also practiced mass tort litigation at Milberg and specializes in medical malpractice and product liability cases.

Richard 'Rick' Meadow is the National Mass Torts Director at the Lanier Law Firm. A contributor to several media outlets, Meadow was appointed to the Plaintiffs' Steering Committee in California lawsuits targeting e-cigarette manufacturer Juul. He also played a key role in talc litigation against Johnson & Johnson, serving on the Plaintiffs' Executive Committee in multidistrict litigation.

What's Next

The cases are still in their early stages, and more lawsuits are likely to come. We’re keeping an eye out for early dispositive motions by the gaming companies as well as any motions by the plaintiffs to consolidate the suits for multidistrict litigation.

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