Sega of America Sues Consovoy McCarthy Over $39 Million Arbitration Bill Dispute

Sega of America is embroiled in a legal dispute with the boutique law firm Consovoy McCarthy. The accusation centers on Consovoy McCarthy’s alleged partnership with New York-based Troxel Law to orchestrate a mass advertising campaign. These advertisements purportedly aimed to gather thousands of claimants by enticing them with the promise of financial gain for simply having played a Sega game.

The legal challenge revolves around the subsequent mass filing of individual arbitration cases on behalf of these claimants with the alternative dispute resolution provider JAMS. This action has led to a substantial invoice totaling $39 million for Sega. Sega contends that the actions of Consovoy McCarthy violated its end user license agreement, which limits users of its mobile games from participating in collective or consolidated actions.

More details regarding the allegations can be accessed here.