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July 26, 2012 / Rabeh Soofi

GameStopped: Video Game Retailer Settles Class Action Lawsuit

The class action against GameStop over misleading and false advertising in connection with the purchase of used video games has been settled, at least on a preliminary basis.  On April 10, 2012, a federal court judge approved the preliminary settlement reached between GameStop and the lead plaintiffs of the class action pending in San Francisco’s federal court for the northern district of California.

The allegations arose when GameStop failed to notify customers that certain video game content would require the payment of additional charges that were not “free,” as GameStop had advertised.  Another allegation in the lawsuit asserted that GameStop substantially marked-up used games it purchased from customers to maximize its profits to more than $2 billion per year, without paying any royalties to video game publishers or developers.

Under the proposed settlement agreement, GameStop must  post signs in its California stores notifying consumers that certain downloadable content may cost them extra, in addition to the amounts they pay to purchase the game itself.  Further, GameStop will be offering consumers a $15 reimbursement via a check/coupon combination.

The details on how class members may receive their $15 have not been released yet, but will be forthcoming. The website established for the settlement is located here:

If you have been deceived or mislead by consumer advertising, contact Khorrami, LLP for a confidential consultation.

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