Gamers Lose Grand Theft Auto V Class Action Lawsuit

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A California federal judge has tossed a class action lawsuit accusing Take-Two Interactive Software Inc., doing business as Rockstar Games, of falsely advertising that its Grand Theft Auto V video game would be available immediately for online play, ruling the packaging never promised the multiplayer features would be available at launch.

Plaintiff Bruce McMahon filed the Grand Theft Auto class action lawsuit in October 2013,  seeking certification for other gamers who purchased Grand Theft Auto V expecting to be able to compete with other players online based on advertisements leading up to the launch. Online multiplayer features were not available for two weeks after the game was released, however.

“Although defendants did promise the availability of GTA Online with GTA V, they never promised immediate availability,” Judge Virginia A. Phillips wrote in a Jan. 29 order granting Take-Two Interactive’s motion to dismiss the class action. “Moreover, because GTA Online was an additional special feature, which could always be suspended or removed, its initial unavailability could not have represented a substantial injury to customers.”

In granting Take-Two Interactive’s motion to dismiss the Grand Theft Auto class action lawsuit, Judge Philips took into consideration the company’s evidence of video game packaging for Grand Theft Auto V. She agreed with the defendants that “nowhere does the GTA V packaging use the word ‘immediate'” and neither are there any statements implying the same.

Further, the “broad language” of the disclaimer indicates that “GTA Online, despite its prominent highlighting on the packaging, may not be immediately available, regardless of the reason for the unavailability, even from the time of the initial release of the game.” As a result, the claim for relief failed the requirements for pleading fraud, as Judge Philips found that a reasonable consumer would not be confused by the language on the packaging.

Without that, necessary for demonstrating reliance per the Consumer Legal Remedies Act, False Advertising Law and Unfair Competition Law, the case cannot continue. Further, Philips decided that a video game and online multiplayer features were not considered “goods” or services as covered by the CLRA.

The plaintiffs are represented by class action lawyers Rex P. Sofonio of Sofonio & Associates APLC and James R. Hawkins.

The Grand Theft Auto Class Action Lawsuit is Bruce McMahon, et al. v. Take-Two Interactive Software Inc., et al., Case No. 13-cv-02032, U.S. District Court, Central District of California.

UPDATE: On Feb. 19, 2016, the 9th U.S. Circuit Court of Appeals has reversed the dismissal of a class action lawsuit against Take-Two Interactive Software Inc. and Rockstar Games Inc. over false advertising allegations related to their Grand Theft Auto V video game.

UPDATE 2: On Dec. 7, 2016, the makers of Grand Theft Auto V are taking another stab at evading a three-year-old false advertising class action lawsuit over access to GTA Online. In the current motion for dismissal, Take-Two Interactive argues the plaintiffs still fail to allege a plausible theory that they relied on the alleged misrepresentations in deciding to buy Grand Theft Auto V.

UPDATE 3: On Jan. 23, 2017, the plaintiffs in a class action lawsuit alleging that an online feature was not immediately available after they purchased Grand Theft Auto V asked a federal judge to keep their case alive, arguing that they relied on the representations about the feature when making their purchase.