Tag Archives: Company Legal & Law Matters

Nintendo and The Pokémon Company are suing Palworld creator Pocketpair

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Nintendo and The Pokémon Company have filed a patent infringement lawsuit against Pocketpair in Tokyo. Pocketpair is the Japanese video game developer behind Palworld, a game people have been describing as a Pokémon parody, featuring cute gun-toting monsters. The game, released in Early Access form on January 18, was an instant hit, selling 15 million copies on Steam and crossing 25 million players within just a month. The Pokémon Company said a few days after Palworld came out that it was going to investigate a game "released in January 2024" and will "take appropriate measures to address any acts that infringe on intellectual property rights related to Pokémon." Looks like the investigation is over, and it has decided to take legal action. 

"This lawsuit seeks an injunction against infringement and compensation for damages on the grounds that Palworld, a game developed and released by the Defendant, infringes multiple patent rights," Nintendo said in its announcement of the lawsuit. 

Pocketpair previously said that its game is more like Ark Survival Evolved and Valheim than Pokémon. Company CEO Takuro Mizobe claimed that Palworld "cleared legal reviews" and that no lawsuits were filed against Pocketpair regarding its development. While Palworld's monsters would look familiar to Pokémon fans, it takes on a darker tone. You can choose to play as a friend to the monsters known as "Pals" and fight off the poachers trying to kill them. But you can also kill and eat Pals, make them fight to the death and even sell them into slavery.

This article originally appeared on Engadget at https://www.engadget.com/gaming/nintendo/nintendo-and-the-pokemon-company-are-suing-palworld-creator-pocketpair-031320550.html?src=rss

Report: Google offered to sell AdX to end EU antitrust suit

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In an effort to quell monopoly concerns in the EU, Google reportedly offered to sell its AdX advertising marketplace. Sources told Reuters that European publishers rejected Google's offer, arguing that the company would have to divest more in order to dismantle the conflicts of interest in its online advertising operations. Lawyers familiar with the antitrust cases said this was the first time Google had offered to sell off an asset in response to this type of lawsuit.

Despite this alleged sale offer, Google is publicly standing firm about its adtech business. "As we have said before, the European Commission's case about our third-party display advertising products rests on flawed interpretations of the ad-tech sector, which is fiercely competitive and rapidly evolving. We remain committed to this business," a Google rep told the publication. We've reached out to Google and will update this story if we receive any additional comment from the company.

Google's control over online advertisements has raised concerns around the globe. Regulators have questioned whether the company's activity in multiple stages of the adtech supply chain allows it to favor its own businesses, creating an unfair advantage that could hurt competition and increase advertising prices.

The European Commission began this push against the company's ad arm last June. The UK's competition watchdog also raised the alarm over a possible Google ad monopoly earlier this month. Google is also currently being sued by the Department of Justice over the same topic in the US.

This article originally appeared on Engadget at https://www.engadget.com/big-tech/report-google-offered-to-sell-adx-to-end-eu-antitrust-suit-203612819.html?src=rss

MrBeast and Amazon are being sued by contestants of their planned competition show

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A lawsuit on behalf of five unnamed contestants who participated in YouTuber MrBeast’s Beast Games was filed on September 16 in Los Angeles against MrBeast as well as Amazon, which plans to distribute the show. It’s also seeking class-action status.

Beast Games is the brainchild of Jimmy Donaldson, also known as MrBeast. This game show had participants go through challenges for a shot at $5 million in cash. There would only be one winner out of 1,000 participants, so the money would only go to the last person standing.

When the five contestants participated in the game show, they each wanted to win the money, but nothing prepared them for the poor conditions, mistreatment and harassment they experienced. Among the 14 complaints are failure to pay minimum wages, sexual harassment, false advertising and failure to provide uninterrupted meal and rest breaks.

The plaintiffs filed this lawsuit on behalf of all Beast Games contestants besides themselves. Much of the lawsuit’s content is hidden, including the contestants’ names and the exact details of their mistreatment. Of note were the female contestants’ experiences. The lawyers claimed that the work environment there “fostered a culture of misogyny and sexism where Production Staff did nothing.”

The contestants were considered employees under California law, but MrBeast and Amazon allegedly misclassified them to obtain a tax credit of around $2 million. They also arrived on set to discover that instead of 1,000 total competitors, there were far more people playing for the prize, thus lowering everyone's chances of coming out a winner. According to the New York Times, the total number of contestants was about 2,000, something MrBeast said was the plan all along. The plaintiffs claimed this significantly reduced anyone’s chances of winning and was considered false advertising. Even worse, the show organizers did not grant them meal and rest breaks as required by California law. According to the lawsuit, some of the show participants developed injuries that “continue to persist and will persist from the future.”

This isn’t the first time MrBeast has been involved in a lawsuit. Last year, he sued Virtual Dining Concepts (VDC) for making subpar MrBeast Burgers, ruining his reputation. VDC countersued MrBeast, seeking $100 million in damages.

According to a report from Variety, MrBeast and Amazon have yet to comment on the lawsuit, with the former refusing to. Beast Games, slated for an Amazon Prime Video release, still has no announced release date.

This article originally appeared on Engadget at https://www.engadget.com/entertainment/streaming/mrbeast-and-amazon-are-being-sued-by-contestants-of-their-planned-competition-show-152613641.html?src=rss

Google wins appeal against $1.7 billion EU fine for ‘abusive’ advertising practices

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The amount of fines Google has to pay in Europe may have become just a bit smaller. It has successfully convinced the European Union's General Court to annul the €1.5 billion ($1.7 billion) penalty levied against it back in 2019 for what the European Commission described as "abusive practices in online advertising." According to the Financial Times, the General Court agreed with the commission's assessment that Google did block rival advertisers from its platform. However, it argued that the commission failed to take into account "all the relevant circumstances" when it assessed how long the company had implemented anti-competitive practices. 

The commission, under competition chief Margrethe Vestager, found back in 2019 that Google had prohibited publishers from placing search adverts from competitors on its search results pages from 2006 until 2009. It changed its rules slightly in 2009, but it wasn't until 2016 that it removed the clause pertaining to the restriction in its contracts. The fine for this particular case was larger than expected, because the commission said it took into account "the duration and gravity of the infringement."

"This case is about a very narrow subset of text-only search ads placed on a limited number of publishers' websites," Google said in a statement to the Financial Times. "We made changes to our contracts in 2016 to remove the relevant provisions, even before the commission’s decision. We are pleased that the court has recognized errors in the original decision and annulled the fine. We will review the full decision closely." Meanwhile, the commission told the publication that it "will carefully study the judgment and reflect on possible next steps." It could still appeal the court's decision.

This is just one of the multiple antitrust fines the European Commission has slapped against Google over the past years. Earlier this month, EU's highest court upheld a different $2.7 billion penalty against the company. The commission imposed that fine on Google back in 2017, because it found that the company, as Vestager explained, "abused its market dominance as a search engine by promoting its own comparison shopping service in its search results, and demoting those of competitors." 

Vestager is stepping down from her role as the European Union's commissioner for competition within the next few weeks. She has been tough on big tech companies throughout her run, and the market abuse cases she has filed over the years led to the creation of the Digital Markets Act (DMA), a regulation meant to prevent the largest players in the industry from abusing their market power.

This article originally appeared on Engadget at https://www.engadget.com/big-tech/google-wins-appeal-against-17-billion-eu-fine-for-abusive-advertising-practices-123006698.html?src=rss

Amazon accused of deceptive ‘sales’ of its own products in lawsuit

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Amazon is facing a class-action lawsuit that accuses the company of misleading pricing practices. The suit alleges that Amazon deceived shoppers by showing inflated list prices for Fire TVs, thus making discounts seem more significant than they actually were.

The lawsuit was filed in the US District Court for the Western District of Washington and claims that the company regularly adopted this practice, calling it a "persistent and uniform scheme." The suit alleges that Amazon created "fake list prices" for its own Fire TVs, making the apparent "discounts" deceptive.

It goes on to accuse the company of tricking its customers into buying Fire TVs by omitting "critical information" concerning the length of the sale and when the list price was actually in use. This allegedly led to Amazon customers spending "more money than they otherwise would have if not for the purported time-limited bargains." The suit claims that "many of the Fire TVs have not been anywhere near the advertised list prices for a year or more."

The lawsuit alleges violations of Washington’s Consumer Protection Act, which bans “unfair methods of competition and unfair or deceptive acts or practices in the conduct of any trade or commerce.” Plaintiff David Ramirez seeks compensatory and punitive damages, in addition to an injunction to stop Amazon from continuing the alleged practices. The suit seeks compensatory damages "in amounts determined by the court and/or jury" and prejudgment interest on everything awarded. 

The lawsuit references a similar case in California from 2021 in which Amazon was barred from using false or misleading list prices in its advertising. The company also agreed to pay around $2 million in penalties and restitution as part of that settlement. As for this case, it’s still early days. 

An Amazon spokesperson declined to comment when approached by Seattle-based news organization KIRO 7. We reached out to the company for our own comment and will report back when we get a response. 

This article originally appeared on Engadget at https://www.engadget.com/big-tech/amazon-accused-of-deceptive-sales-of-its-own-products-in-lawsuit-193027775.html?src=rss

Hundreds of Amazon drivers in NYC join the Teamsters union

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Hundreds of Amazon drivers in New York City have joined the Teamsters union in the hope of obtaining better pay and working conditions. The union says a majority of drivers at each of three delivery service partners (DSPs) working out of a Queens warehouse have signed authorization cards.

According to a Teamsters press release, the drivers have been organizing for a year to secure fair pay, consistent schedules, reasonable workloads and proper pay maintained trucks. They walked off the job last December as part of a nationwide protest against Amazon’s alleged unfair labor practices and union-busting efforts.

At least on paper, joining the union should give the drivers more leverage as they push Amazon for better working conditions. But that doesn’t necessarily mean the company will play ball. The Amazon Labor Union, one of the first major successful organization efforts within the company in the US, has yet to secure a union contract, two years after forming. The group became a Teamsters affiliate this summer.

However, the union has found some success on behalf of Amazon workers. Last month, a regional National Labor Relations Board director determined that Amazon is a joint employer of some third-party drivers in Palmdale, California. The Teamsters hope that finding will set a precedent for the rest for DSP drivers elsewhere. The Queens drivers are the first Amazon workers to organize with the Teamsters following that decision.

This article originally appeared on Engadget at https://www.engadget.com/big-tech/hundreds-of-amazon-drivers-in-nyc-join-the-teamsters-union-202758685.html?src=rss

Former MoviePass CEO reportedly pleads guilty to securities fraud

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Mitch Lowe, one of two MoviePass leaders indicted by the Justice Department in 2022, has pleaded guilty to securities fraud charges. The former CEO admitted to conspiring to deceive the public and investors about the service’s sustainability. Variety reports that the details of Lowe’s plea agreement haven’t been made public.

Prosecutors claim Lowe knew from the start that the company’s $9.95 “unlimited” plan was a short-term gimmick to attract subscribers and inflate stock. He’s also accused of making false statements in press releases, interviews and SEC filings about MoviePass’ long-term viability.

Those statements included allegedly lying about the company’s ability to become profitable on subscription fees alone and having tech that could generate revenue from customer data. He also claimed MoviePass was profiting from multiple revenue streams despite not having any income beyond subscriptions.

Prosecutors also accused Lowe and Ted Farnsworth, former CEO of MoviePass’ parent company Helios and Matheson, of preventing subscribers from getting what was promised from the “unlimited” subscription. The company settled with the FTC in 2021 over allegations that it intentionally invalidated subscriber passwords to freeze their accounts, blocking their ability to get the movie tickets the service promised. MoviePass and its parent company declared bankruptcy in 2020.

Although no sentencing date has been set, Lowe is free on bond and has a status conference court date scheduled in Miami for March 2025. The 72-year-old former executive faces a maximum of five years in federal prison.

“Mitch is a good man who is looking to move forward with his life,” Lowe’s attorneys, Margot Moss and David Oscar Markus, said in a statement to Variety. “He has accepted responsibility for his actions in this case and will continue to try to make things right.”

Meanwhile, Farnsworth is still in custody. He was initially freed on a $1 million bond that was revoked in August 2023 after the feds accused him of misusing nearly $300,000 in company funds. Farnsworth's former boyfriend, who he met on an escort site, was paid $147,000, and received a Cadillac worth $144,000; after the pair split up, the feds say he falsely accused his ex of stealing the vehicle.

This article originally appeared on Engadget at https://www.engadget.com/big-tech/former-moviepass-ceo-reportedly-pleads-guilty-to-securities-fraud-201131284.html?src=rss

23andMe will pay $30 million to settle 2023 data breach lawsuit

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23andMe is close to settling a proposed class action lawsuit filed against the company over a data breach that compromised 6.9 million users' information. According to the preliminary settlement filing, the DNA testing company has agreed to pay $30 million to affected customers, as well as to conduct annual computer scans and cybersecurity audits for three years. A website will be built to notify people eligible to a portion of the settlement fund and to facilitate payments. Affected users will also be sent a link where they can delete all their information from the service, and they'll be able to enroll to a three-year Privacy & Medical Shield + Genetic Monitoring program for free. A judge still has to approve those terms. 

In October 2023, the company admitted that the DNA Relatives profile information of roughly 5.5 million customers and the Family Tree profile information of 1.4 million DNA Relative participants had been leaked. It later revealed in a legal filing that the bad actors started breaking into customer accounts in late April 2023 and that they had access to its systems until September that year. It said that the hackers used a technique called credential stuffing, which uses previously compromised login credentials to access customer accounts. 

The breach led to several class action lawsuits filed against the company, including one that accused 23andMe of failing to notify the plaintiffs that they were specifically targeted for having Chinese and Ashkenazi Jewish heritage. In the settlement agreement [PDF] for the consolidated lawsuit, 23andMe noted that it "denies the claims and allegations set forth in the Complaint" and that it "denies that it failed to properly protect the Personal Information of its consumers and users." 

According to Reuters, 23andMe describes its financial condition as "extremely uncertain." In its financial report for the 2024 fiscal year, it revealed that it earned a total revenue of $220 million, down 27 percent from a $299 million revenue the year before. A huge chunk of the settlement money will come from cyber insurance, though, which the company expects to cover $25 million out of the $30 million total. 

This article originally appeared on Engadget at https://www.engadget.com/cybersecurity/23andme-will-pay-30-million-to-settle-2023-data-breach-lawsuit-150058702.html?src=rss

Utah judge blocks law preventing youth from accessing social media freely

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On Tuesday, Chief US District Judge Robert Shelby granted a preliminary injunction to block Utah from limiting the social media usage of minors. Republican Governor Spencer Cox had signed the Utah Minor Protection in Social Media Act earlier in March. It was supposed to take effect on October 1, but the court’s decision to block the law is a victory for young social media users in Utah.

This isn’t the first time Utah’s governor has attempted to limit social media use among the youths in the state. Last year, he signed two bills that required parents to grant permission for teens to create social media accounts, and these accounts had limitations like curfews and age verification. He replacing the older laws in March due to lawsuits challenging their legality.

Under the law, social media companies would have been forced to verify the age of all users. If a minor registers for an account, they are subject to various limitations. The content they share would be seen only by connected accounts. Additionally, minor accounts could not be searched for or messaged by non-followers or friends, effectively nonexistent to strangers.

The primary reason for the preliminary injunction is due to NetChoice’s claim that the law constitutes a violation of the First Amendment. NetChoice is a trade association formed by tech giants such as X (formerly Twitter), Snap, Meta and Google. The association has managed to win in court battles and block similar laws entirely or in part in states like Arkansas, California and Texas.

This article originally appeared on Engadget at https://www.engadget.com/social-media/utah-judge-blocks-law-preventing-youth-from-accessing-social-media-freely-160008587.html?src=rss

Utah judge blocks law preventing youth from accessing social media freely

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On Tuesday, Chief US District Judge Robert Shelby granted a preliminary injunction to block Utah from limiting the social media usage of minors. Republican Governor Spencer Cox had signed the Utah Minor Protection in Social Media Act earlier in March. It was supposed to take effect on October 1, but the court’s decision to block the law is a victory for young social media users in Utah.

This isn’t the first time Utah’s governor has attempted to limit social media use among the youths in the state. Last year, he signed two bills that required parents to grant permission for teens to create social media accounts, and these accounts had limitations like curfews and age verification. He replacing the older laws in March due to lawsuits challenging their legality.

Under the law, social media companies would have been forced to verify the age of all users. If a minor registers for an account, they are subject to various limitations. The content they share would be seen only by connected accounts. Additionally, minor accounts could not be searched for or messaged by non-followers or friends, effectively nonexistent to strangers.

The primary reason for the preliminary injunction is due to NetChoice’s claim that the law constitutes a violation of the First Amendment. NetChoice is a trade association formed by tech giants such as X (formerly Twitter), Snap, Meta and Google. The association has managed to win in court battles and block similar laws entirely or in part in states like Arkansas, California and Texas.

This article originally appeared on Engadget at https://www.engadget.com/social-media/utah-judge-blocks-law-preventing-youth-from-accessing-social-media-freely-160008587.html?src=rss