Per recent reports, a federal judge in California’s Northern District has denied a proposed agreement from Sony regarding a class-action dispute centered on PlayStation Store credit practices. Plaintiffs alleged that the company imposed inflated pricing on digital titles sold through its exclusive PlayStation Store platform. Sony had offered to resolve the case by distributing $7.8 million in store credits to qualifying PlayStation Network users.

The court dismissed the settlement proposal, citing concerns over the nature of compensation. Notably, arrangements involving store credits are often scrutinized due to perceived limitations on consumer benefit.

The filing lacked critical details, such as projected compensation figures if plaintiffs succeeded in litigation or calculations adjusting for claim reductions. Additionally, it omitted estimates of net settlement distribution after legal fees, administrative costs, and service awards—information vital for evaluating fairness. Revised proposals must outline a clear allocation plan for the $7.85 million fund, including approximate individual payouts and justification for using platform-specific credits over cash.

Credits tied to PSN accounts raise red flags as coupon-based resolutions, which courts typically view unfavorably. Any revised agreement must demonstrate how such credits ensure equitable compensation compared to monetary alternatives.

While Sony maintained no admission of fault, the company expressed a desire to avoid prolonged legal proceedings. The court’s decision leaves uncertainty about whether users will ultimately receive the proposed credits.

In a related international case, UK plaintiffs are pursuing significantly higher damages against Sony compared to the US settlement terms.