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Sunday, April 28, 2024

Class action lawyers give up challenge to $26.5M Fortnite settlement

Attorneys & Judges
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SAN FRANCISCO (Legal Newsline) – The end has come for class action lawyers who filed a competing lawsuit against the maker of the video game Fortnite.

San Francisco federal judge Charles Breyer on May 2 dismissed the proposed class action that was doomed by a settlement of similar claims in North Carolina state court.

Lawyers at Bay Advocacy and One LLP tried to argue Epic Games picked the North Carolina attorneys to negotiate with, and those attorneys in turned never intended to vigorously pursue the case. They’d rather take their chunk of an easy $26.5 million settlement, Bay Advocacy and One LLP argued.

But ultimately, all parties in the San Francisco case agreed the settlement in North Carolina releases the claims the plaintiffs made. Epic Games had recently motioned to dismiss the San Francisco case.

“The Zanca settlement approved by the state court system in North Carolina, where Epic Games is headquartered, is entitled by law to full faith and credit in this court,” Epic Games wrote.

“Here, Plaintiffs’ claims were released under the terms of the Zanca settlement. Accordingly, just as a North Carolina state court would treat Plaintiffs’ claims as released, this court must do the same. Because Plaintiffs have released their claims by operation of the Zanca settlement, the case is moot.”

The issue in the litigation is with V-Bucks, which can be earned or purchased while playing Fortnite. Bay Advocacy says allowing a minor to use parents’ credit cards to buy them is a violation of the law.

A minor can’t enter into a contract relating to any personal property not in his or her immediate possession, the California suit says. Those contracts are void and amounts paid pursuant to them are refundable, it adds.

The North Carolina settlement provides up to $26.5 million in cash for the class and 1,000 V-Bucks for each member.

Firms involved in that settlement include Whitfield Bryson, McGuire Law, Devlin Law Firm and McMorrow Law. Their fee request was $11.3 million.

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