The gamers who are plaintiffs in a class-action suit against Sony might now be feeling similar to when they almost landed the killing blow on one of Elden Ring's notorious bosses before dying. Sure, they can try again, but they were so close.
A U.S. District Court judge denied approval of a preliminary settlement between Sony and PlayStation 5 owners. This halts, at least for the moment, Sony's payment of $7.85 million in damages to its customers over "supracompetitive" prices in its PS Store in an agreement announced in December 2024. The proposed class plaintiff has 30 days to remedy the deficiencies raised by the court.
You Can Also Play Monopoly With a PS5 (Really)
For decades, video game consoles and computers allowed gamers to purchase different games on cartridges, floppy discs, or Blu-ray discs that were inserted into the unit. As technology marched on, digital downloads emerged as another method of ownership, with the games purchased online and downloaded directly into the PS5.
In 2019, Sony announced that it would no longer allow third-party sellers like Walmart, Amazon, and GameStop to sell digital download codes that could be redeemed at the PS Store. The retailers were still able to sell physical copies of the games. However, one of the two versions of the PS5 Sony sells can only download games digitally, lacking the means to access a Blu-ray disc.
In 2021, Adrian Cendejas became the proposed class plaintiff in an antitrust class action suit filed against Sony Interactive Entertainment and the Sony Group Corporation. By the time a settlement was reached, the plaintiffs in what became a consolidated suit numbered over four million.
The suit accused Sony of creating a monopoly by forcing gamers to pay inflated prices for digital downloads only available through the PS Store. This was in violation of Sections 2 and 3 of the Sherman Antitrust Act and Section 4 of the Clayton Act, the plaintiffs allege. Those with digital-download-only PS5s had no option for accessing games except through the PS Store, which they claimed artificially inflated prices to take advantage of the situation.
Sony's motion to dismiss part of the consolidated complaint was denied in 2023, perhaps changing the company's mindset from fighting to settling. In December 2024, a $7.85 million settlement was announced, with Sony admitting to no wrongdoing as part of the deal. Gamers look forward to celebrating their victory with games purchased through the PS Store on Sony's dime.
RTFM, Bro
U.S. District Judge Araceli Martínez-Olguín said that the settlement, which had been finalized in March 2025, did not meet the standards of the respective guidelines in the Northern District of California’s Procedural Guidance for Class Action Settlements. Judge Martínez-Olguín noted that Cendejas, through his attorneys, had "failed completely" to address the Procedural Guidance, including several examples.
The plaintiff's motion for a settlement doesn't provide an estimated recovery or a range of potential recovery for class members. It also lacks a breakdown of how the settlement amount would be distributed to the plaintiffs or the attorneys. The court is also demanding a clearer definition of the two classes of plaintiffs in the consolidated suit.
Perhaps most egregiously, in Judge Martínez-Olguín's opinion, the now-denied settlement called for plaintiffs to be compensated with cash-value PlayStation Network (PSN) account credits instead of cash. Some courts frown upon so-called "settlement coupons." Any amended proposal of the settlement must show how the inclusion of such coupons is fair to the plaintiffs.
If the proposed class plaintiff doesn't submit an amended approval within 30 days, the two sides must file a joint status report telling the court how the litigation will proceed. Gamers will have to hope a new settlement takes effect in time for the release of Madden NFL 26 and Borderlands 4.
Related Resources
- Can I Sue a Video Game Creator or Company? (FindLaw's Consumer Protection Law)
- Apple App Store Antitrust Appeal Argument Held (FindLaw's U.S. Supreme Court)
- Class Action Cases (FindLaw's Legal System)
