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Gambling

Epic Games’ CAD 2.75M Settlement Over ‘Loot Box’ Purchases

By Leonid Shmatenko5 November 20232 min read

The Lawsuit

The class-action lawsuit, certified by the Supreme Court of British Columbia, accused Epic Games of violating consumer protection laws. Canadians who purchased loot boxes in Fortnite between 2017-2019 and Rocket League between 2016-2019 were eligible to join the class action before the August deadline. Guardians of gamers were also allowed to participate.

Settlement Details

Epic Games agreed to a settlement of CAD 2.75 million, releasing itself from all claims made in the lawsuit. The notice of the proposed settlement clarified that this payment is not an admission of any wrongdoing on Epic Games’ part. Any funds remaining after the distribution will be donated to the Law Foundation of British Columbia and other charitable organizations that support the well-being of video game consumers.

Compensation to Players

Those involved in the class-action began receiving payments this week, with each participant getting up to CAD 25. The lawyers representing the class-action are set to receive up to 25% of the settlement amount.

Epic Games’ Response

In light of the controversy, Epic Games discontinued the use of random item loot boxes in both Fortnite and Rocket League in 2019. They emphasized the importance of players knowing what they are purchasing upfront. A spokesperson from the company stated that while some players enjoyed the surprise element of loot boxes, others were left disappointed.

For more details on the settlement and how to claim compensation, please refer to the documents section or email lootbox@velvetpayments.com. Only natural persons in Canada, and their guardians or estates, who purchased random-item loot boxes in Rocket League or Fortnite are eligible.

Additional Information

  • Case Names:
    • Johnston v Epic Games, Inc. et al.
    • Bourgeois v Electronic Arts Inc et al
  • Court Files:
    • British Columbia Superior Court: SCBC S-220088 (Vancouver)
    • Quebec Superior Court: 500-06-001132-212 (Montreal)

Image source: FortNiteBR via Reddit

Author

  • Leonid Shmatenko

    Founder of Esports Legal News, Leonid Shmatenko, stands at the forefront of legal innovation in the esports domain, crafting pathways through its unique regulatory and technological landscapes. With a rich tapestry of experience in esports and blockchain, Leonid provides astute legal guidance to esports associations, clubs, and entities, ensuring they navigate through regulatory, data protection, and technology law with finesse and foresight.

    Leonid’s expertise is not merely recognized within the confines of his practice but is also celebrated in the legal community. Who's Who Legal extols him as "an innovative thinker and an expert in CIS and esports disputes," further describing him as an "outstanding arbitration practitioner with diverse experience and a broad network." These accolades underscore his adept ability to navigate complex disputes and regulatory challenges, particularly in the vibrant and fast-evolving esports industry.

    At Esports Legal News, Leonid is not merely a founder but a pioneering force, ensuring that the esports industry is navigated with strategic legal insight, safeguarding its interests, and propelling it into a future where legal frameworks are not just adhered to but are also instrumental in shaping its evolution and growth.

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