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Court Denies Motion to Dismiss in Streamlabs Consumer Class Action

Case Updates | 12/23/22

Related Case: Streamlabs LLC Consumer Litigation

Wolf Popper attorneys, on behalf of Plaintiff and a proposed class of similar consumers, succeeded in defeating the motion to dismiss filed by the Defendant, Streamlabs LLC. This lawsuit alleges that Streamlabs misleads consumers and fails to disclose that adding a GIF or effect to a onetime donation to a streamer using Streamlabs results in enrollment in Streamlabs Pro, which charges consumers $5.99 per month automatically, even if they do not have a Streamlabs account. Streamlabs moved to dismiss the case on multiple grounds, but the Court denied the motion in its entirety and sustained all of the Plaintiff’s claims. In doing so, the Court found that “the plaintiff alleged facts that, if true, plausibly plead Streamlabs’ misrepresentations and deceptive advertising.” The Court also observed that, based on Plaintiff’s allegations, “a reasonable consumer (including tech-savvy consumers) could be deceived . . . and conclude that the $5.99 per month fee was a onetime fee. The disclosures did not say that the fee was an automatic monthly fee. There is evidence of actual consumer confusion, by the plaintiff and the consumer reviews. Similarly, for the standalone fraud claims, the allegations are sufficiently specific that Streamlabs’ process misled consumers that the $5.99 per month fee was a one-time donation, not an automatic monthly fee.” Finally, the Court found that the complaint in the case “alleges consumer confusion sufficiently and that the deception about the subscription outweighs its benefits, given that consumers ‘don’t believe they are enrolled in and, therefore, don’t use’ the subscription.”

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