Facts

Carl Evans and others filed a class action against Linden Research Inc. for conversion, intentional interference with contractual relations and prospective economic judgment and unjust enrichment in connection with the Internet role-playing world, Second Life.

Linden created Second Life. Participants in Second Life created characters, avatars, to represent themselves in Second Life and interact with other avatars in the virtual world. Participants established reputations online by buying and selling virtual items. They also purchased and sold virtual land. Participants bought these virtual items from Linden using in-game money known as "lindens" or "Linden dollars" to perform monetary transactions in Second Life. Linden currency was purchased with U.S. dollars. Participants can also exchange their linden currency into U.S. dollars.

Plaintiffs were participants in Second Life who had purchased lindens from Linden.

PLAINTIFFS' CONTENTIONS:
Plaintiffs contended that defendant unilaterally terminated and/or suspended their accounts, but were not compensated for the value of their virtual land, items, and/or currency in their accounts. Plaintiffs also contended that defendant made false representation about the ownership of virtual land and items. They also claimed that defendant wrongfully confiscated their property from them.

Result

The parties agreed to settle their dispute. For virtual items, eligible class members were given a choice of $15 per class member or the class member may choose to receive back their virtual items or sell them in the marketplace. Linden agreed to refund 100 percent of the U.S. dollar balances to eligible class members through PayPal, totaling approximately $24,237. Then, Linden would return 100 percent of the Linden dollar balances in eligible class member accounts, which will then be converted into U.S. dollars with a total value of approximately $171,973. Linden also agreed to pay two Linden dollars per square meter of virtual land held by eligible class members for a total value of approximately $2,189, and refund $1,000 setup fee.