Amazon settlement opens path for consumers to seek $200 million from app developers
AMZN•Settlement would not require Amazon to pay cash
Amazon has agreed to a class action settlement in a U.S. lawsuit over social casino apps, but the company would not be cutting a check. Instead, the proposed deal would allow a $201 million judgment to be entered against Amazon while assigning the class Amazon’s rights to seek reimbursement from third-party app developers.
Consumers could pursue damages tied to app purchases
The case, filed in 2023 in federal court in Seattle, alleges Amazon violated Washington gambling and consumer protection laws by brokering transactions in social casino apps offered through the Amazon Appstore. The plaintiff said the $201 million covenant judgment represents 30% of class members’ spending on the apps, based on transaction data Amazon produced in the litigation.
Parallel cases continue against other tech companies
Similar cases are pending against Apple, Google and Meta, all of which have denied wrongdoing. Amazon also denied any wrongdoing in the lawsuit.
Next steps depend on court approval and recoveries from developers
The settlement still needs a judge’s approval. If approved, class members would agree not to collect the judgment from Amazon, and any money recovered from app developers would be distributed to them. Attorneys for the plaintiff said earlier settlements with app developers have returned more than $650 million to consumers across Washington and the U.S.
