Sony’s PlayStation Credits Settlement Rejected by US Judge

A United States District Court judge from the Northern District of California recently rejected a settlement proposal in a class action lawsuit filed against Sony over PlayStation credits. 

The plaintiffs had accused Sony of overcharging for digital games sold through its PlayStation Store, which the company allegedly monopolized. In an effort to resolve the lawsuit, Sony agreed to settle by offering $7.8 million worth of PlayStation credits to millions of PlayStation Network users. However, the judge found several issues with the proposed settlement, ultimately denying it. One of the key reasons for the rejection was that settlements involving ‘coupons,’ such as PlayStation credits, are often viewed unfavorably by courts. The judge noted that the motion lacked key details, including an estimate of how much class members would have received had they won the case and how the settlement amount would be distributed. The motion also failed to explain the discount applied to the claims and left out an estimated breakdown of how the $7.8 million would be allocated for attorney’s fees, service awards, costs, and other expenses. Sony had denied any wrongdoing but decided to settle to avoid the further costs and distractions of ongoing litigation. As a result, it remains uncertain whether PlayStation users will actually see the promised credits. A similar lawsuit has been filed in the UK, though the plaintiffs are seeking much higher compensation than their American counterparts.