Facts

Jane Doe, a minor, played Roblox: a gaming platform bringing together users in a virtual universe. Users not only play games on Roblox, they can also purchase items using "Robux," Roblox's in-game currency. Robux may be obtained in various ways, including purchase using real currency or paid memberships. On May 25, 2021, Doe, through her attorney father, filed a class action complaint against Roblox Corporation.

PLAINTIFF'S CONTENTIONS: Plaintiff contended that defendant's practice of disabling users' access to virtual items obtained through Robux payment under the guise of "content moderation," without refunding or replacing those repossessed items, was fraudulent and deceptive. This practice perpetuated a profit-gaining cycle wherein users would purchase Robux using real money to buy replacement items, while also gaining fees from the items' sellers and commissions from new purchases. Accordingly, plaintiff asserted causes of action for common law fraud, conversion, and unjust enrichment, along with Consumer Legal Remedies Act and Unfair Competition Law violations.

DEFENDANT'S CONTENTIONS: Defendants denied all allegations of wrongdoing or that it broke any laws, maintaining that its Roblox Terms of Use expressly explained its practice.

Settlement Discussions

The parties engaged in mediation with Greg Lindstrom of Phillips ADR. On November 16, 2022, the parties reached a settlement agreement.

Result

Defendant Roblox established an all inclusive $10 million settlement fund from which users would automatically receive Robux credit to their Roblox account. Alternatively, if certain users' share of the settlement fund exceeded $10, those users had the option of submitting a claim to receive those funds in actual, not virtual, cash. Finally, Roblox agreed to continue providing automatic Robux credit for deleted or moderated items, unless involving violations, for at least four more years.