A U.S. judge authorized a $415 million class-action settlement settling claims that online gaming companies DoubleDown Interactive LLC and International Game Technology PLC (IGT.N) violated Washington state gambling laws and consumer protections.
In his ruling, Seattle federal judge Robert Lasnik termed the agreement “fair, reasonable, and adequate.” After a hearing, he gave his final approval order, ending four years of litigation.
Online customers claimed defendants’ “social casino” games “constitute unlawful gambling under Washington’s gambling laws.” The settlement concluded a series of similar cases.
UK-based International Game Technology and DoubleDown deny culpability. They claimed the plaintiffs’ claims “rest on novel and untested interpretations of Washington’s gambling laws.” Players buy chips for free games. However, the lawsuit claimed gamblers bought more chips than necessary.
The plaintiffs’ lawyers claimed that tens of thousands of class members “purchased and lost chips” by playing at DoubleDown Casino. Class attorneys said Washington state law allowed users to sue for losses.
Friday messages to DoubleDown and its lawyers were unanswered. A similar request has been unanswered by International Game Technology lawyers. Lasnik said seven class members declined the settlement, but there were no formal objections.
Edelson’s plaintiffs’ lawyer Todd Logan claimed Friday that Edelson’s social-casino litigation had netted $651 million for clients and class members.
In the current deal, Logan claimed: “many class members stand to receive, individually, hundreds of thousands of dollars.” Chicago-based Edelson lead class attorneys received almost $121.5 million in legal fees from Lasnik.
Lasnik’s fee was 29% of the settlement fund. However, plaintiffs’ lawyers claimed they would seek no more than 30% in fees.
Lasnik’s order stated that the case was “risky, novel, and hard-fought,” justifying a request for fees over the 25% threshold in Washington and other 9th U.S. Circuit Court of Appeals states.
