Download as pdf or txt
Download as pdf or txt
You are on page 1of 64

Case 3:23-cv-00224-JM Document 121 Filed 03/29/24 Page 1 of 64

UNITED STATES DISTRICT COURT


FOR THE EASTERN DISTRICT OF ARKANSAS
NORTHERN DIVISION

CASEY DUNN, )
individually and on behalf of )
G.D., a minor; and )
THOMAS DUNN, )
)
Plaintiffs, )
)
v. ) Case No. 3:23-cv-00224-JM
)
ACTIVISION BLIZZARD, INC.; )
INFINITY WARD, INC.; )
TREYARCH CORP.; )
SLEDGEHAMMER GAMES, INC.; )
MICROSOFT CORPORATION; ) Hon. James M. Moody Jr.
EPIC GAMES, INC.; )
ELECTRONIC ARTS, INC.; )
UBISOFT DIVERTISSEMENTS, INC. )
d/b/a UBISOFT MONTREAL; )
NINTENDO OF AMERICA, INC.; )
GOOGLE LLC; and )
JANE & JOHN DOE I-XX, )
)
Defendants, )

RESPONSE IN OPPOSITION TO
MOTION TO DISMISS OF
GOOGLE LLC, NINTENDO OF AMERICA, INC.,
AND MICROSOFT CORPORATION

Plaintiffs Casey Dunn, individually and on behalf of G.D., a minor, and Thomas

Dunn hereby respond and state their opposition to the motion to dismiss (Dkt. 104) filed

by Defendants Google LLC (“Google”), Nintendo of America Inc. (“Nintendo”), and

Microsoft Corporation (“Microsoft”) (sometimes, collectively, the “Platform

Defendants”) as follows:

-1-
Case 3:23-cv-00224-JM Document 121 Filed 03/29/24 Page 2 of 64

INTRODUCTION

This case is about conduct, not content – product defects, not expression. Nintendo

and Microsoft sold their video game consoles—Nintendo’s Switch and Microsoft’s Xbox

Series X--as toys to be used by everyone, including minors like G.D., to play video games

like Fortnite, Call of Duty, Battlefield, and Rainbow Six. Google, Nintendo, and Microsoft

also designed and supplied online gaming products—Nintendo eShop, Xbox Game Pass

Ultimate and Xbox Cloud Gaming, and Google Play—to be used with video game

consoles, personal computers, and/or mobile phones to access, download, and play those

video games, and countless others, online on any device using the same gamer account.

This product design was purposeful.

Google, Nintendo, and Microsoft designed and distributed defective video game

products that harm users, including minors like G.D.. Each Defendant made a business

decision to utilize addictive mechanisms and patented techniques in the design of their

video game products—their toys—to take advantage of the chemical reward systems of

users’ brains to create addictive engagement, compulsive use, abuse, and addiction,

while knowing that the design would cause harm and injure users, and that their product

designs are particularly dangerous and damaging to minors’ and young adults’

developing brains. Google, Nintendo, and Microsoft did not warn anyone that their

video game products were designed to cause addictive engagement and, consequently,

were harmful to the users for whom the products were intended. Google, Nintendo, and

Microsoft certainly did not warn Plaintiffs. This was deceptive, fraudulent, and negligent.

-2-
Case 3:23-cv-00224-JM Document 121 Filed 03/29/24 Page 3 of 64

Google, Nintendo, and Microsoft’s conduct was, and is, outrageous and extreme.

Nintendo and Microsoft designed, marketed, and supplied their video game consoles to

the public knowing that the video games to be played using those consoles, including

Fortnite, Call of Duty, Battlefield, and Rainbow Six, were and are likely cause the user to

become addicted to video games. Google, Nintendo, and Microsoft designed their online

video game products with addictive technologies and AI to create addictive engagement.

Google, Nintendo, and Microsoft did not harm product users, like G.D., accidentally or

in a vacuum. Each Defendant knew what the other was doing, entering into licensing

agreements to utilize the same patented technologies or revenue agreements splitting the

proceeds from the addictive microtransactions built into the games. Plaintiffs seek to hold

them accountable for doing so. See Amended Complaint (Dkt. 102) (“Am. Compl.”).

In an effort to avoid accountability, Google, Nintendo, and Microsoft ask the Court

to dismiss Plaintiffs’ Amended Complaint with prejudice. See Motion to Dismiss of

Google LLC, Nintendo of America Inc., and Microsoft Corporation (Dkt. 104);

Memorandum of Law in Support of Nintendo of America Inc., Google LLC, and

Microsoft Corporation’s Motion to Dismiss Plaintiffs’ First Amended Complaint (Dkt.

105) (“Platform Defs’ Brf.”). For the reasons stated herein, Google, Nintendo, and

Microsoft’s arguments for dismissal are baseless and the Platform Defendants’ Motion to

Dismiss should be denied.

-3-
Case 3:23-cv-00224-JM Document 121 Filed 03/29/24 Page 4 of 64

STATEMENT OF FACTS1

I. THE DUNN FAMILY

Plaintiffs Casey Dunn and Thomas Dunn (collectively, the “Dunns”) are married

and live in Arkansas with G.D., their thirteen (13) year old child. They want what is best

for their child, and they want G.D. to be happy. G.D., like so many other kids, wanted to

play video games. The Dunns, relying on Defendants’ representations that video games

and video game consoles are safe for children, purchased Fortnite and a Nintendo Switch

for G.D. around the time G.D. was four (4) years old. As G.D. aged, they wanted other

popular video games, like Call of Duty and Battlefield, and video game consoles, like a

Microsoft Xbox Series X, which came with built-in access to digital cloud gaming using

Microsoft’s Xbox Game Pass Ultimate product. G.D. is also able to play Fortnite, Call of

Duty, and Battlefield on their Android phone. The Dunns purchased, or allowed G.D. to

purchase and/or use, these video game products unaware that they pose a risk of harm,

including addictive behavior and brain damage, to users like G.D.. See Am. Compl. ¶¶

25-32, 34, 235, 409-411, 466, 471, 500, 521, 629.

Since G.D. began playing Fortnite, Call of Duty, and Battlefield, G.D.’s life has

deteriorated. G.D. spends approximately thirteen (13) hours a day playing these games

(along with Rainbow Six).2 G.D. has spent approximately $3,000 on in-game transactions

1 The facts that follow are based on the First Amended Complaint (Dkt. 2) and all reasonable inferences

drawn therefrom, which at this stage of the litigation, must be taken as true and weighed in Plaintiffs’ favor.
See generally Bell Atlantic Corp. v. Twombly, 550 U.S. 544 (2007). Further, for ease of reading citations to factual
allegations in the Amended Complaint will be made at the end of each paragraph.

2Defendants Ubisoft Divertissements, Inc. d/b/a Ubisoft Montreal and Ubisoft Entertainment are the
manufacturer, designer, developer, publisher, and supplier of Rainbow Six; however, they have not joined

-4-
Case 3:23-cv-00224-JM Document 121 Filed 03/29/24 Page 5 of 64

and downloadable content (i.e., designed product “upgrades”) to keep playing and

advancing in the game. G.D. spends approximately $350 monthly on gaming. Neither the

Dunns nor G.D. can control G.D.’s gameplay or his spending on product upgrades or

microtransactions while G.D.’s playing those video games. When the Dunns try to limit

G.D.’s spending, take away G.D.’s ability to play video games (e.g., tell G.D. to go to bed),

G.D. experiences withdrawal symptoms, including rage, anger, and physical outbursts,

and has thrown and broken game controllers. G.D. has also snuck playing games while

the Dunns sleep. Id. ¶¶ 20-21, 235-238, 241-242, 246-251.

G.D. has lost interest in things G.D. did prior to beginning to use the Defendants’

products, like hobbies, sports, and hanging out with friends. G.D.’s formal education has

likewise been impacted by G.D.’s use of the Defendants’ products, with a drop in school

grades, an inability to attend school regularly and the need for an individualized

education plan resulting in G.D. being homeschooled. G.D. has also experienced physical

injuries (including excessive weight gain resulting in morbid obesity, hand pain, elbow

pain, and shoulder pain) along with emotional distress as a result of G.D.’s compulsive

use and addiction to playing these video games. Id. ¶¶ 20-21, 238-240, 244.

G.D. is addicted to playing video games. G.D.’s video game addiction negatively

impacts the Dunns’ familial home on a daily basis. Id. ¶¶18-24, 238, 242-243, 246, 249-250.

G.D. is addicted to playing video games. G.D.’s video game addiction negatively

impacts the Dunns’ familial home on a daily basis. Id. ¶¶18-24, 238, 242-243, 246, 249-250.

this Motion and their responsive pleadings are due April 15, 2024. See Ubisoft Defendants’ Waiver of
Service (Dkt. 48).

-5-
Case 3:23-cv-00224-JM Document 121 Filed 03/29/24 Page 6 of 64

II. VIDEO GAME ADDICTION AND ITS EFFECTS

Video game addiction (“VGA”) is a worldwide epidemic. VGA, also known as

gaming disorder or internet gaming disorder (“IGD”), is characterized by severely

reduced control over gaming habits, resulting in negative impacts on daily functioning,

including personal, social, educational, and occupational responsibilities. Video game

addicts are usually 12 to 20 years of age and spend between 2-10 hours a day playing

video games. Preventing these addicts from playing leads to tension and anger while

allowing them to play leads to long stretches of time playing video games—where these

addicts will forego food or sleep. Id. ¶¶ 1, 2, 5, 195.

VGA/IGD can be diagnosed when an individual engages in gaming activities at

the cost of fulfilling daily responsibilities or pursuing other interests without regard for

the negative consequences. The main features of VGA/IGD are impaired control over

gaming, increasing priority given to gaming over other activities, and continuation or

escalation of gaming despite negative consequences. Id. ¶¶ 197.

The Diagnostic and Statistical Manual of Mental Disorders (“DSM-5”), the manual

used by clinicians and researchers to diagnose and classify mental disorders, recognizes

gaming disorder as a diagnosable condition and recommends further study and more

clinical research and experience. Gaming disorder is the only behavioral addiction

recognized in the DSM-5. The American Psychiatric Association (“APA”), the

organization responsible for publishing the DSM-5, suggests the effects or symptoms of

IGD may be similar to those of other proposed psychological addictions. Id. ¶ 202.

-6-
Case 3:23-cv-00224-JM Document 121 Filed 03/29/24 Page 7 of 64

The APA has developed nine criteria, as outlined in the DSM-5, for characterizing

internet gaming disorder: (1) preoccupation with internet games; (2) withdrawal

symptoms when internet gaming is taken away; (3) tolerance, resulting in the need to

spend increasing amounts of time engaged in internet games; (4) unsuccessful attempts

to control participation in internet games; (5) loss of interests in previous hobbies and

entertainment as a result of, and with the exception of, internet games; (6) continued

excessive use of internet games and despite knowledge of psychosocial problems; (7)

deceiving family members, therapists, or others regarding the amount of internet

gaming; (8) use of internet games to escape or relieve negative moods; and (9)

jeopardizing or losing a significant relationship, job, or education or career opportunity

because of participation in internet games. The DSM-5 acknowledges that several

consequences from gaming disorder arise within only 5 to 12 weeks of beginning to play.

Id. ¶ 200.

Using these nine criteria, the IGD-20 Test was developed and was the first

standardized psychometric tool to assess internet gaming disorder. The IGD-20 Test

includes twenty (20) questions designed to assess the extent of problems caused by

disordered gaming and the degree of symptoms experienced by gamers. The IGD-20 Test

conceptualized disordered gaming according to the six first-order latent components

well-established in behavioral addictions: salience, mood modification, tolerance,

withdrawal symptoms, conflict, and relapse. Id. ¶¶ 206, 207, 208.

The Internet Gaming Disorder Scale-Short-Form (“IGDS9-SF”) was then created,

as a brief standardized psychometric tool to assess gaming disorder. The IGDS9-SF

-7-
Case 3:23-cv-00224-JM Document 121 Filed 03/29/24 Page 8 of 64

includes a total of nine items reflecting the nine clinical criteria identified by the APA. Id.

¶¶ 209, 210.

Another commonly used instrument for the measurement of addiction is the

Problem Video Game Playing (“PVP”) Questionnaire, which is a scale measured by using

a survey containing nine yes-or-no questions. The PVP Questionnaire’s survey questions

are based on the DSM-5 criteria for substance dependence and for pathological gambling,

as well as the literature on addictions. Approximately 3-4% of gamers are addicted to

video games. In a 2021 systematic review and meta-analysis, the global prevalence of

gaming disorder was found to be 3.05%, meaning as many as 60 million people (or more)

are suffering from gaming disorder. These statistics are even higher for minors: 8.5% of

youths aged between 8 and 18 suffer from gaming disorder. Id. ¶¶ 211,212, 213, 214.

Likewise, gaming disorder, with both online and offline variants, has been

included in the International Classification of Diseases (“ICD-11”), the global

categorization system for physical and mental illnesses published by the World Health

Organization. Id. ¶ 201.

IGD addiction does not happen overnight. It is a process that involves a three-

stage cycle akin to substance abuse: binge/intoxication, withdrawal/negative affect, and

preoccupation/anticipation. This cycle becomes more severe as a person continues to use,

causing dramatic changes in brain function that reduce a person's ability to control their

substance use. Id. ¶ 177.

IGD is a growing and prolonged behavioral pattern of gaming, leading to

behavioral and cognitive syndromes. Those affected not only experience increased loss

-8-
Case 3:23-cv-00224-JM Document 121 Filed 03/29/24 Page 9 of 64

of control over gaming, but also increased tolerance and the presence of withdrawal

syndrome if unable to play at increasing periods of time. Id. ¶ 194.

Further, researchers have concluded that excessive use of video games may lead

to negative effects like stress, aggressive behavior, verbal memory deficiency, depression,

lowered cognitive abilities, sleeping disorders, anxiety, and behavioral addiction. Clinical

evidence has shown that subjects addicted to online games experience biopsychological

symptoms and complications. These symptoms may include the traditional symptoms of

drug addiction, such as hangover, changes in mood, adaptability, withdrawal, conflict,

and recurrence symptoms. 3 Id. ¶ 216.

Finally, research shows that video game usage affects and alters the users’ brain.

For instance, more than two brain imaging studies on IGD participants have shown

reduced gray-matter volume. 4 Brain activation studies also have shown that videogame

playing involved changes in reward and loss of control, and that gaming pictures activate

regions similar to those activated by cue-exposure to drugs. Activation studies also show

evidence that individuals with IGD have impaired inhibition, and that video game cues

activate craving, attention, and executive function areas of the brain. These cognitive,

sensory-motor, and emotional processes may be associated with long-term changes to the

brain as a result of prolonged exposure. Structural studies have shown alterations in the

3 Aviv Weinstein & Michel Lejoyeux, Neurobiological mechanisms underlying internet gaming disorder, 22(2)

DIALOGUES CLIN. NEUROSCI. (2020); Virginia Lerida-Ayala, Internet and Video Games: Causes of Behavioral
Disorders in Children and Teenagers, CHILDREN, 10, 86 (2023).

4 Id.

-9-
Case 3:23-cv-00224-JM Document 121 Filed 03/29/24 Page 10 of 64

volume of the ventral striatum (a critical component of motor and reward systems in the

brain) are possible as a result of changes in reward. Id. ¶¶ 226, 227, 228.

This well-supported scientific evidence 5 shows that disruptions in three areas of

the brain are particularly important in the onset, development, and maintenance of

addiction disorders: the basal ganglia, the extended amygdala, and the prefrontal cortex.

These disruptions: (1) enable substance-associated cues to trigger substance seeking (i.e.,

they increase incentive salience); (2) reduce sensitivity of brain systems involved in the

experience of pleasure or reward and heighten activation of brain stress systems; and (3)

reduce functioning of brain executive control systems, which are involved in the ability

to make decisions and regulate one's actions, emotions, and impulses. Comorbidity

studies also indicate that a minor with a diagnosis of ADHD, autism, or oppositional

defiant disorder is at a higher risk of video game addiction, worsening of ability to control

impulsivity, and brain damage. Id. ¶ 215.

III. THE VIDEO GAME INDUSTRY

A. THE VIDEO GAME INDUSTRY AND ARTIFICIAL INTELLIGENCE

The global video game industry occupies a special place in the entertainment and

media market, now being one of the fastest-growing segments. While video games have

been around for over 80 years, the video game industry market has grown exponentially

over the last 14 years. Between 2007 and 2018, the industry has grown by more than $100

5 See, e.g., Aviv Weinstein et al., New Developments in brain research of internet and gaming disorder,
NEUROSCIENCE AND BIOBEHAVIORAL REVIEWS, 75, 314-330 (2017); Xiaoyu Niu, et al., Meta-analysis of
structural and functional brain alterations in internet gaming disorder, FRONT PSYCHIATRY 2022 Oct
25;13:1029344. doi: 10.3389/fpsyt.2022.1029344. PMID: 37033880; PMCID: PMC10074425.

-10-
Case 3:23-cv-00224-JM Document 121 Filed 03/29/24 Page 11 of 64

billion to $137.9 billion. In 2023 alone, the video game industry’s revenue was $365.6

billion globally. This explosive growth is largely credited to the advent of a new revenue

model based on in-game purchases such as “monetization schemes” or

“microtransactions” of downloadable products and Artificial Intelligence. This model is

driven by increasing a minor’s game play time, keeping them engaged to assure

addiction, and increase in-game purchases. See, e.g., Am. Compl. ¶¶ 69, 87, 89, 90, 91, 92,

93, 151, 163.

Artificial Intelligence (“AI”) is a term used to describe a robot which by definition

is a machine, created to mimic human intelligence and expression. Like most products

created by humans, robots and bots are not capable of human expression and do not enjoy

the same constitutional protections of human beings. A defective robotic machine, similar

to an automobile, can be subject to product liability torts, Artificial intelligence (AI) refers

to computer systems or a set of algorithms to mimic intelligent human behavior6 with the

capability of performing complex tasks that historically only a human could do, such as

reasoning, making decisions, or solving problems. A robot is a machine—especially one

programmable by a computer—capable of carrying out a complex series of actions

automatically. A robot (or bots) function is guided by artificial intelligence built into the

robot or bot. which can be guided by an external control device or an embedded

control. 7 Robots may be constructed to evoke human form but robots are task-performing

6 https://www.merriam-webster.com/dictionary/artificial intelligence

7 Id.

-11-
Case 3:23-cv-00224-JM Document 121 Filed 03/29/24 Page 12 of 64

machines, designed with an emphasis on stark functionality, rather than expressive

aesthetics.

AI has been an integral product in the explosive growth of video games. Video

game companies, such as Roblox Corporation, EA, Epic Games, Microsoft, Sony, and

Meta, anticipate AI will revolutionize the video game industry and have dedicated

substantial resources to the research and development of video game AI programs. 8 AI

was first introduced with Atari 2600's early titles such as “Computer Space” and “Pong”

but has come a long way since. See Am. Compl. ¶¶ 85-87, 91-94.

Neural Networks, an AI method that teaches computers to process data,

especially data illegally collected on minors and minor’s game playing responses, in a

way that is inspired by the human brain, which are allowing AI systems to become

smarter and unfortunately for G.D., AI achieved the goal of addicting millions of minors

like G.D.. Popular AI video game methods and techniques include: (1) reinforcement

learning which trains game-playing bots to learn and achieve optimal and desired results

by playing against itself hundreds of times a day for months; (2) behavior trees and finite

state machines, which give AI bots a set of specific tasks or actions, based on the current

situation, like an algorithm or flow diagram to follow; and (3) machine learning, which

uses algorithms to study incoming data (such as data collected on minor gamers),

interpret it, and decide on a course of action in real-time. In other words, minors are

playing with robots in the video game. See Am. Compl. ¶¶ 69, 92, 95-151, 163-175.

8 AI is Changing How we Play...and Monetize Video Games, EVERYREALM, July 4, 2023, available at:
https://www.everyrealm.com/post/ai-is-changing-how-we-play-and-monetize-video-games.

-12-
Case 3:23-cv-00224-JM Document 121 Filed 03/29/24 Page 13 of 64

For instance, OpenAI Five, a computer program developed by OpenAI, uses

reinforcement learning and trained game-playing bots to beat human gamers by having

the bots play against themselves hundreds of times a day for months. The effectiveness

and value of OpenAI Five was demonstrated in 2017, when it defeated Dendi, a

professional Dota 2 player, in a live one-on-one game. OpenAI Five also allows for more

efficient training for larger games where the number of possible positions and

combinations of game mechanics are extremely large. Other AI video games programs

include: (1) AlphaStar which uses supervised learning and reinforcement learning as part

of a deep neural network trained on raw game data and was the first artificial intelligence

program to beat a top professional StarCraft player; (2) Capture the Flag AI by Google’s

DeepMind research company which uses reinforcement learning to train bots to play a

game mode called Capture the Flag, in which the bots were capable of defeating

professional human players after playing 450,000 games; (3) Charisma AI which creates

AI-generated characters that provide detail-rich stories and narratives, which can give

emotional responses, remember past interactions, and use state-of-the-art voices to set

the character apart; (4) Inworld AI, with which Microsoft recently announced a multi-

year partnership, utilizes an AI character runtime engine to create entirely new narratives

with dynamically-generated stories, quests, and dialogue for players to experience 9; and

9 https://developer.microsoft.com/en-us/games/articles/2023/11/xbox-and-inworld-ai-partnership-
announcement/.

-13-
Case 3:23-cv-00224-JM Document 121 Filed 03/29/24 Page 14 of 64

(5) MetaAI which is utilized by Ubisoft to give Non-Playing Characters (“NPCs”)

persistence and purpose in a game world. See Am. Compl. ¶¶ 163-164.

With respect to microtransactions, many video companies employ the assistance

of AI to analyze players’ behaviors and tailor in-game purchases to their interests,

increasing the likelihood that players will make a purchase. For instance, Activision has

a patent (Am. Compl. ¶ 151(b)) designed to drive microtransactions is carried out with

the assistance of AI. The patent is described as system and method is provided that drives

microtransactions in multiplayer video games. The system may include a

microtransaction arrange matches to influence game-related purchases. For example, the

system may match a more expert/marquee player with a junior player to encourage the

junior player to make game-related purchases of items possessed/used by the marquee

player. A junior player may wish to emulate the marquee player by obtaining weapons

or other items used by the marquee player. This is shown in the patent design:

Id. ¶ 151(b), These artificial technologies, and other design techniques, are commonly

used in video game products. Id. ¶¶ 69, 151, 163; see also id. ¶¶ 92, 95-151, 163-175.

-14-
Case 3:23-cv-00224-JM Document 121 Filed 03/29/24 Page 15 of 64

B. NINTENDO: SWITCH & NINTENDO ESHOP

Nintendo is a video game company that designs, develops, manufactures,

publishes, distributes, and supplies both video games and video game consoles,

including the Nintendo Switch and Nintendo Switch Lite, as well as the Nintendo eShop.

Am. Compl. ¶¶ 62, 387.

The Nintendo Switch and Switch Lite are handheld console devices that allow for

both online game play and online game purchases. Through the Switch and Switch Lite,

Nintendo provides users the ability to download certain games from the Nintendo eShop

and play them on the Switch. Id. ¶¶ 388-390.

Nintendo intentionally created its consoles and eShop with psychologically

addictive features and tactics to ensure users would keep playing the console and

purchasing games and in-game content. To do so, Nintendo hires behavioral

psychologists and neuroscientists to design its products and market in the best way

possible to attract more users, especially minors and young adults, to use the consoles

and purchase games and content from the eShop. Id. ¶¶ 395-396, 398, 434, 437, 477, 495,

514, 534, 537, 559, 560, 580, 624, 637.

Once a game is downloaded from the eShop, Nintendo provides a framework for

in-game purchases to initiate and process transactions. This framework enables game

developers to sell microtransactions and/or loot boxes in their games through Nintendo.

Nintendo’s specifically addictive design allows Nintendo—in exchange for enabling

developers to make sales through the eShop—to keep a percentage of all revenue

generated by game sales, microtransactions, and other in-game purchases. Thus, by

-15-
Case 3:23-cv-00224-JM Document 121 Filed 03/29/24 Page 16 of 64

enabling sales through the eShop—even sales of patently addictive and harmful

materials, Nintendo thereby increases its own revenues. Id. ¶¶ 392-396, 637.

Nintendo targeted consumers and purchasers, including minors like G.D., to

purchase and play its video games and video game consoles, and to purchase in-game

items or perks through microtransactions. This targeting was accomplished with the aid

of in-game advertising and “fake” avatar friends, as well as targeted categories on the

Nintendo eShop. Id. ¶¶ 69-70, 536, 637-38, 659.

Though Nintendo is equipped with the knowledge of the addictive risks inherent

in the use of its consoles and eShop, Nintendo has failed to inform the public, users, or

parents of such risks. Nintendo knows that many users—like G.D.—play in excess, but

rather than discourage such play, Nintendo profits off their continued game time and

spending. Nintendo does not adequately inform users of the inherent risks involved with

using the Nintendo consoles and eShop, or that these products were designed to addict

and harm users. Nintendo knew, or by the exercise of reasonable care, should have

known, that use of its products was dangerous, harmful, and injurious when used in a

reasonably foreseeable manner, particularly by youth, and concealed serious safety risk

and information from users. Id. ¶¶ 398, 461, 463, 477-79, 495-97, 499, 514-16, 534, 537-39,

562, 564-65, 580, 593-97, 610-14, 623-25, 639, 641, 644-46.

Additionally, Nintendo acted in concert with Epic Games to distribute, market,

supply, and sell the Fortnite video games and all in-game downloadable content and in-

game purchases contained therein, in order to increase their own revenue by addicting

minors. Nintendo offers a bundle pack for users to purchase the Switch and receive a

-16-
Case 3:23-cv-00224-JM Document 121 Filed 03/29/24 Page 17 of 64

special edition of Fortnite that contains exclusive cosmetic items. Nintendo also acted in

concert with Activision, Infinity Ward, Treyarch, Sledgehammer Games, Microsoft, Epic

Games, DICE, EA, Ubisoft Montreal, Ubisoft, and Google in entering into licensing

agreements to utilize the same patents to keep users—like G.D.—addicted to Nintendo’s

and the other Defendants’ video game products. Id. ¶¶ 63, 68, 660-61, 669.

C. MICROSOFT: XBOX SERIES X, XBOX GAME PASS ULTIMATE, & XBOX CLOUD
GAMING

Microsoft is a technology company that designs, develops, manufactures,

publishes, distributes, supplies, and sells software and hardware—including video

games and video game consoles, and specifically the Xbox Series X, the Xbox Game Pass

subscription service, and Xbox Cloud Gaming. Am. Compl. ¶ 58, 364-65, 368-69.

The Xbox Series X is the fourth generation of consoles in the Xbox series, released

in November of 2020. The Xbox Series X is backwards-compatible with nearly all Xbox

One-compatible games and accessories, allowing users to play any game—even older

games—designed, developed, manufactured, and sold to be played on most Xbox

consoles. In addition to playing physical copies of games on the Xbox Series X, users can

also download games from the Xbox Store, or play through Xbox Cloud Gaming with a

Game Pass subscription. Am. Compl. ¶¶ 365-366. 10

10See also Microsoft’s website, available at: https://www.xbox.com/en-US/consoles/xbox-series-x (last


accessed March 29, 2024).

-17-
Case 3:23-cv-00224-JM Document 121 Filed 03/29/24 Page 18 of 64

Through the Xbox Store, users can download games and certain downloadable

content for said games. Microsoft markets this store as “safe” for the whole family to use,

regardless of the harmful addictive content built into these products. Id. ¶¶ 366-67.

Xbox Game Pass is a paid tiered-subscription service offered by Microsoft that

provides users access to online games. Additionally, the highest tier—Xbox Game Pass

Ultimate—has access to Xbox Cloud Gaming. Cloud Gaming, initially released for beta

testing in 2019 and later launched for subscribers of Game Pass Ultimate in September

2020, is now available to all Game Pass subscribers who pay the $17 per month

subscription fee for the Ultimate tier level. Id. ¶¶ 368-71.

Xbox Cloud Gaming operates by linking a user’s device to a remote server in the

cloud, thereby allowing users to save gameplay in the cloud and access the gameplay

from numerous devices at any given location. With Xbox Cloud Gaming, a user no longer

needs an Xbox console to play games; instead, they can access the games from a number

of devices including mobile devices and laptops. Id. ¶¶ 372-76.

The content library of Xbox Cloud Gaming includes thousands of games spanning

multiple genres and rating categories. Not only are the games in the content library

extensive, but the list is everchanging; thus, players are encouraged to come back to finish

a game before it disappears or check often for new game options. Id. ¶¶ 374, 377.

This tactic, among others, is just one example of a plethora of means Microsoft

utilizes to addict users to its product. In another example, with Xbox Game Pass Ultimate,

users are offered daily, weekly, and monthly “quests” that can be completed for varying

amounts of Microsoft Reward points. Users are thus encouraged to constantly log into

-18-
Case 3:23-cv-00224-JM Document 121 Filed 03/29/24 Page 19 of 64

the platform and are rewarded for doing so. Through such tactics, Microsoft has garnered

over 20 million people to stream games using Xbox Cloud gaming. Id. ¶¶ 378-80.

Each of the millions of individuals utilizing Xbox Cloud Gaming are able to

connect and interact with each other through a feature called “Xbox Social.” This

feature—akin to social media sites—permits users to add friends to a Friends list and then

see what games your friends are playing, or even invite them to join your game. To find

friends, users are encouraged to link to other social media accounts. Users are also able

to chat with each other individually or in groups. This further encourages users to

perpetually log into Cloud Gaming in order to continue conversations with other users,

keep up with friends on specific games, play when their friends are playing, and compete

with friends. Id. ¶¶ 381-85.

Each of these tactics were intentional designs by Microsoft in its consoles, Xbox

Store, Xbox Game Pass, and Xbox Cloud Gaming. These psychologically addictive

features and tactics ensure users would keep playing the console and purchasing games

and in-game content. Such features were designed with the aid of behavioral

psychologists and neuroscientists who provide input on the best way to design and

market Microsoft’s products to attract more users, especially minors and young adults,

to use the consoles and purchase games, content, and subscriptions from the Xbox Store

and Xbox Game Pass. Id. ¶¶ 386, 434, 437, 477, 495, 514, 534, 537, 559, 560, 580, 624, 637.

The addictive features and AI technology built into Microsoft’s products are the

result of patented addictive technologies. For instance, Microsoft currently holds U.S.

Patent No. 702,523 B2 for a way to capitalize on a player's tendency to commit to a

-19-
Case 3:23-cv-00224-JM Document 121 Filed 03/29/24 Page 20 of 64

purchase after investing significant time into a game. With this patent, a user is made

aware of an opportunity to add an achievement to their collection by downloading and

playing a demo or trail version of a particular game, but instead of recording the

achievement upon completion, the game sends a notification to the user stating that the

achievement will not be recorded unless they purchase the full version of the game at

that time. Id. ¶ 151(f).

Microsoft targeted consumers and purchasers, including minors like G.D., to

purchase and play its video games, video game consoles, and subscriptions, and to

purchase in-game items or perks through microtransactions. Doing so enables Microsoft

to increase its revenue through direct sales and by retaining a percentage of games sold

in the Xbox Store or downloadable content purchased through the Xbox framework. This

targeting was accomplished with the aid of in-game advertising and “fake” avatar

friends, as well as targeted categories in the Xbox Store and through Xbox Game Pass. Id.

¶ 69-70, 536, 637-38, 659.

Though Microsoft is equipped with the knowledge of the addictive risks inherent

in the use of its consoles, Xbox Store, Xbox Game Pass, and Xbox Cloud Gaming,

Microsoft has failed to inform the public, users, or parents of such risks. Microsoft knows

that many users—like G.D.—play in excess, but rather than discourage such play,

Microsoft profits off their continued game time and spending. Microsoft does not

adequately inform users of the inherent risks involved with using its products, or that

these products were designed to addict and harm users. Microsoft knew, or by the

exercise of reasonable care, should have known, that use of its products was dangerous,

-20-
Case 3:23-cv-00224-JM Document 121 Filed 03/29/24 Page 21 of 64

harmful, and injurious when used in a reasonably foreseeable manner, particularly by

youth, and concealed serious safety risk and information from users. Id. ¶¶ 386, 461, 463,

477-79, 495-97, 499, 514-16, 534, 537-39, 562, 564-65, 580, 593-97, 610-14, 623-25, 639, 641,

644-46.

Additionally, Microsoft acted in concert with Activision, Infinity Ward, Treyarch,

Sledgehammer Games, Epic Games, DICE, EA, Ubisoft Montreal, and Ubisoft to

distribute, market, supply, and sell the Call of Duty, Fortnite, Battlefield, and Rainbow

Six video games and all in-game downloadable content and in-game purchases contained

therein, in order to increase their own revenue by addicting minors. For example, Fortnite

is playable for free through Microsoft’s Xbox Network, without a subscription to Xbox

Game Pass. Microsoft also acted in concert with Activision, Infinity Ward, Treyarch,

Sledgehammer Games, Nintendo, Epic Games, DICE, EA, Ubisoft Montreal, Ubisoft, and

Google in entering into licensing agreements to utilize the same patents to keep users—

like G.D.—addicted to using Microsoft’s and the other Defendants’ video game products.

Id. ¶¶ 59, 68, 263, 660-61, 668.

D. GOOGLE: GOOGLE PLAY

Google is a technology company that designs, develops, manufactures, publishes,

distributes, and supplies products in several technological areas, including computer

software, consumer electronics, and artificial intelligence. In particular, Google operates

Google Play, an online video game product which functions as a way for users to

download certain games and play them on Android mobile devices. Both Call of Duty

-21-
Case 3:23-cv-00224-JM Document 121 Filed 03/29/24 Page 22 of 64

and Rainbow Six—played by G.D. on their mobile device—are available on Google Play.

Am. Compl. ¶¶ 399, 400.

Google intentionally created Google Play with psychologically addictive features

and tactics to ensure users would keep purchasing games and in-game content. To do so,

Google hires behavioral psychologists and neuroscientists to design its products and

market them in the best way possible to attract more users, especially minors and young

adults, to purchase games and content from Google Play. Id. ¶¶ 404-406, 434, 437, 477,

495, 514, 534, 537, 559, 560, 580, 624, 637.

Once a game is downloaded from Google Play, Google provides a framework for

in-game purchases to initiate and process transactions. This framework enables game

developers to sell microtransactions and/or loot boxes in their games through Google.

This specifically addictive design allows Google—in exchange for enabling developers to

make sales through Google Play—to keep thirty percent (30%) of all revenue generated

by game sales, microtransactions, and other in-game purchases. Thus, by enabling sales

through its products—even sales of patently addictive and harmful materials, Google

thereby increases its own revenues. Id. ¶¶ 111, 401-403, 637.

Google targeted consumers and purchasers, including minors like G.D., to

purchase and play video games using Google Play, and to purchase in-game items or

perks through microtransactions. Id. ¶¶ 69-70, 536, 637-38, 659.

Though Google is equipped with the knowledge of the addictive risks inherent in

the use of Google Play, Google has failed to inform the public, users, or parents of such

risks. Google knows that many users—like G.D.—play and spend in excess, but rather

-22-
Case 3:23-cv-00224-JM Document 121 Filed 03/29/24 Page 23 of 64

than discourage such conduct, Google profits off their continued game time and

spending. Google does not adequately inform users of the inherent risks involved with

using Google Play and downloading games therefrom, or that its products were designed

to addict and harm users. Google knew, or by the exercise of reasonable care, should have

known, that use of its products was dangerous, harmful, and injurious when used in a

reasonably foreseeable manner, particularly by youth, and concealed serious safety risk

and information from users. Id. ¶¶ 404, 407, 461, 463, 477-79, 495-97, 499, 514-16, 534, 537-

39, 562, 564-65, 580, 593-97, 610-14, 623-25, 639, 641, 644-46.

Additionally, Google acted in concert with Activision, Infinity Ward, Treyarch,

Sledgehammer Games, Ubisoft Montreal, and Ubisoft to distribute, market, supply, and

sell the Call of Duty and Rainbow Six video games and all in-game downloadable content

and in-game purchases contained therein, in order to increase their own revenue by

addicting minors. Google also acted in concert with Activision, Infinity Ward, Treyarch,

Sledgehammer Games, Microsoft, Epic Games, DICE, EA, Ubisoft Montreal, Ubisoft, and

Nintendo in entering into licensing agreements to utilize the same patents to keep users—

like G.D.—addicted to Google’s and the other Defendants’ video game products. Id. ¶¶

65, 68, 670.

IV. THE LINK BETWEEN THE DEFENDANTS’ PRODUCTS AND VIDEO GAME ADDICTION

Researchers have concluded that excessive use of video games may lead to

negative effects like stress, aggressive behavior, verbal memory deficiency, depression,

lowered cognitive abilities, sleeping disorders, anxiety, and behavioral addiction. Clinical

evidence has shown that subjects addicted to online games experience biophysical

-23-
Case 3:23-cv-00224-JM Document 121 Filed 03/29/24 Page 24 of 64

symptoms and complications, and may include traditional symptoms of drug or alcohol

addiction like a hangover, changes in mood, adaptability, withdrawal, conflict, and

recurrence symptoms. Brain imaging studies have shown that long-term video game

playing affects the brain regions responsible for reward, impulse control, and sensory-

motor coordination. Other studies have shown excessive use of videogames leads to more

negative consequences on cognitive processes, including multi-second time perception,

inhibition, and decision-making. Brain imaging studies have also shown structural

changes in the brain of video game players, particularly a reduction in white-matter

density and gray-matter volume, demonstrating the effect using video games has on a

player’s brain. Am. Compl. ¶¶ 216-217, 219-234.

Industry leaders like Google, Nintendo, and Microsoft have created a generation

of gaming addicts. Nintendo and Microsoft’s development of their video games consoles,

which they designed to maximize the effect of the addictive design mechanisms in the

video games G.D. played. Gaming companies, like Google, Nintendo, and Microsoft,

know that the best way to get a player to come back and continue using their products

(and playing video games) is to make the game a habit or part of their life. Gaming

companies, like the Platform Defendants, know this and use deceptive and unfair tactics

to keep players coming back to their gaming consoles or, ideally, online cloud gaming

platforms. Many of the people playing video games are minors, or young adults who

began playing as kids, who cannot control their gameplay and are addicted to playing

video games. This is due to Google, Nintendo, and Microsoft’s design of their products.

To be clear, Nintendo and designed their gaming consoles, cloud gaming platforms, and

-24-
Case 3:23-cv-00224-JM Document 121 Filed 03/29/24 Page 25 of 64

cloud gaming services are designed to keep players continuously engaged, and utilize

and rely on the AI patents to study the skill level and behavior of users (including minors)

so that Google, Nintendo, and Microsoft can target the user with specific solicitations to

purchase additional in-game products, content, and other game, and to target users for

prize promotions and rewards designed to create addictive behavior in the user, and to

target users to purchase specific games available for use with Nintendo and Microsoft’s

products. Google did the same with its Google Play. In sum, Google, Nintendo, and

Microsoft manufactured, published, marketed, supplied, and sold video game products

(including but not limited to game consoles and/or cloud gaming platforms) that had

been specifically developed and designed to cause compulsive use and addictive

engagement in the product user. Id. ¶¶6-10, 12-13, 176, 178, 181-192.

VGA and IGD, and the harmful consequences thereof, is expanding due to Google,

Nintendo, and Microsoft’s online cloud gaming products, which are designed to cause

addictive behavior and to be used with video games that are designed to cause addictive

behavior. The Platform Defendants use the same traditional game tactics, such as

feedback loops and reward systems, and patented designs containing addictive features

and technology, that the Game Defendants do to ensure users played longer and spent

more on microtransaction embedded in the game. Cloud gaming products, like Nintendo

eShop, Xbox Game Pass Ultimate, Xbox Cloud Gaming, Xbox Store, and Google Play, are

a type of online gaming console that runs video games on remote servers and streams

them directly to a user’s device at any time. These cloud gaming platforms are designed

to keep users engaged and to work with stand-alone gaming consoles, personal

-25-
Case 3:23-cv-00224-JM Document 121 Filed 03/29/24 Page 26 of 64

computers, and personal mobile devices. Google, Nintendo, and Microsoft designed their

video game products to keep consumers playing—and spending—by enlisting the help

of behavioral psychologists and neuroscientists to conduct state-of-the-art research and

to collect data that they use to develop and design product updates that make their video

game products more addictive. This monetization product design, along with Google,

Nintendo, and Microsoft’s use of algorithms, feedback loops, randomization of product

upgrades, and other addictive design features in their gaming consoles and online

gaming products leads to VGA, IGD, and other injuries in users. Id. ¶¶ 6-16, 92, 108-109,

112-113, 114-118, 128-154, 161-189.

V. THE LINK BETWEEN THE PLATFORM DEFENDANTS’ PRODUCTS AND G.D.’S VIDEO
GAME ADDICTION & INJURIES

Nintendo Switch, Nintendo eShop, Xbox Series X, Xbox Store, Xbox Game Pass

Ultimate, Xbox Cloud Gaming, and Google Play were designed to create addictive

engagement and to be used with addictive video games like Fortnite, Call of Duty,

Rainbow Six, and Battlefield. Google, Nintendo, and Microsoft’s video game products

cause harm to users, including gaming disorder, brain damage, and other mental and

physical injury. G.D. has used, and is unable to stop or limit use of, these the Platform

Defendants’ video game products a result of Defendants’ product designs. G.D. used the

Platform Defendants’ products as they were intended to be used, unaware that they were

designed to be addictive and would cause harm. G.D. has been harmed due to Google,

Nintendo, and Microsoft’s intentional, wrongful, deceptive, and negligent conduct

-26-
Case 3:23-cv-00224-JM Document 121 Filed 03/29/24 Page 27 of 64

involving the development, design, manufacture, production, publishing, supply, and

sale of their video game products. See, e.g., Am. Compl. ¶¶ 19-24, 237, 239-40, 251-254.

LEGAL STANDARD

When a defendant files a motion to dismiss, the Court reviews the complaint to

determine whether it contains sufficient facts which, if accepted as true, state a claim for

relief that is plausible on its face. See Bell Atlantic Corp. v. Twombly, 550 U.S. 544, 570 (2007).

A claim is plausible where the plaintiff pleads factual content that would allow a court to

draw the reasonable inference that defendant is liable for the misconduct alleged. Ashcroft

v. Iqbal, 556 U.S. 662, 677-678 (2009). A complaint should not be dismissed for failure to

state a claim unless it appears beyond doubt that the plaintiff can prove no set of facts

that would entitle them to relief. Twombly, 550 U.S. at 583; Levy v. Ohl, 477 F.3d 988, 991

(8th Cir. 2007).

OPPOSITION ARGUMENT11

I. SECTION 230 OF THE COMMUNICATIONS DECENCY ACT AND THE FIRST AMENDMENT
DO NOT APPLY TO THE PLATFORM DEFENDANTS’ CONDUCT.

This case is about conduct, not content – product defects, not expression. Defendants

designed and distributed defective video game products that harm kids. Plaintiffs seek

to hold them accountable for doing so. Neither Section 230 of the Communications

Decency Act (“Section 230”) nor the First Amendment bars Plaintiffs’ claims against

11Google, Nintendo, and Microsoft have, in moving for dismissal, adopted and incorporated the Motion to
Dismiss (Dkt. 102) and Memorandum in Support (Dkt. 103) filed by the Game Defendants as support for
dismissal on their behalf. Plaintiffs, therefore, incorporate by reference and adopt all arguments opposing
dismissal against the Game Defendants to this response and state that no grounds exist for dismissal of any
claim, against any defendant.

-27-
Case 3:23-cv-00224-JM Document 121 Filed 03/29/24 Page 28 of 64

Microsoft, Nintendo, or Google. Regardless, Section 230 and the First Amendment are

affirmative defenses that the Court should not resolve in Defendants favor on a motion

to dismiss.

A. SECTION 230 AND THE FIRST AMENDMENT DO NOT PROTECT GOOGLE,


NINTENDO, AND MICROSOFT.

Plaintiffs allege that Google, Nintendo, and Microsoft “defectively designed” their

video game products to “addict minors and young adults who were particularly unable

to appreciate the risks posed by the products and were particularly susceptible to harms

from those products,” and to “take advantage of the chemical reward system” of minor

users’ brains “to create addictive engagement, compulsive use, and additional mental

and physical harm.” Am. Compl. ¶¶ 434, 437.

Specifically, Plaintiffs challenge “the patented design strategies and other

features” that Google, Nintendo, and Microsoft embedded in their products “to make

them initially and progressively more stimulative, to maximize young consumers’ usage

time and consequently addict them.” Id. ¶ 439. These defective features include

“microtransactions,” id. ¶¶ 95-113, and related design strategies that incentive users to

make impulsive purchases of in-game virtual items by, for example, suggesting that a

special item is only available for a short amount of time, id. ¶¶ 109, 117, or suggesting

that only a small number of special items are available, id. ¶ 117; “predatory monetization

schemes,” such as “loot boxes” that contain a random selection of virtual items—likely

determined by algorithms—which may or may not give users who purchase them an

advantage in the game, id. ¶¶ 129-38, “rubber-banding” algorithms that dynamically

-28-
Case 3:23-cv-00224-JM Document 121 Filed 03/29/24 Page 29 of 64

adjust the prices and value of in-game virtual items based on individual user data related

to their spending power and cost sensitivity, id. ¶¶ 120-27, 139-44, and “pay-to-win”

models that give users who are willing to shell out more money a disproportionate

advantage over other users, id. ¶¶ 145-48; and other patented addictive technologies,

including algorithms that capitalize on a user’s tendency to purchase an item after

investing significant time into the game, id. ¶ 151 (citing U.S. Patent No. 702,523 B2),

algorithms that allow new users to purchase in-game support more cheaply than

experienced users, id. (citing U.S. Patent No. 9,795,886 Bl), and algorithms that encourage

users to make purchases outside of a game to receive in-game benefits, id. (citing U.S.

Patent No. 10,252,170 B2). By designing and distributing their products with these

predatory monetization schemes and patented addictive technologies, Google, Nintendo,

and Microsoft “ensured that they could increase and extend profits by addicting their

most vulnerable users.” Id. ¶ 234.

Plaintiffs allege that because of these defective features, Google, Nintendo, and

Microsoft’s products “fail to meet the safety expectations of ordinary consumers when

used in an intended or reasonably foreseeable manner” and “create[] an inherent risk of

danger, specifically, a risk of abuse, addiction, and compulsive use by youth which can

lead to a cascade of harms.” Id. ¶¶ 438, 440. Specifically, Plaintiffs allege that 13-year-old

G.D. suffered serious injuries “[a]s a direct and proximate result of Defendants’

respective products’ defective design,” including “mental health diagnoses, physical pain

in their hands, elbow, and shoulders, diminished social interactions, a drop in their

grades and inability to attend school, depression, a lack of interest in other

-29-
Case 3:23-cv-00224-JM Document 121 Filed 03/29/24 Page 30 of 64

sports/hobbies, a loss and/or lack of friends at school, withdrawal symptoms such as

rage, anger, and physical outbursts, pain and suffering, mental anguish, and emotional

distress.” Id. ¶ 449.

Plaintiffs further allege that none of Google, Nintendo, and Microsoft’s products

contain any kind of warning that the products “pose an unreasonable risk of harm and

addiction to users, particularly minors and young adults”—nor have Google, Nintendo,

and Microsoft ever warned the public of such risks. Id. ¶ 460. Specifically, Google,

Nintendo, and Microsoft have failed to inform users that their products cause addiction

and compulsive use; that their products “harvest and utilize user data in such a way that

increases a user’s risk of addiction”; that the “feedback loops and strategized patented

material” in their products “are designed to promote increasingly stimulative and

alarming content to encourage compulsive engagement by the user”; that new users of

their products “can identify themselves as minors, begin to use the product[s], and do so

indefinitely, without any time or usage limitations, without any spending limitations,

without ever receiving a safety warning, and without ever having to provide information

so that each Defendant can warn the users’ parents or guardians”; that the likelihood and

severity of harms from their products is greater for minors and young adults; and that

the “likelihood and intensity of these harmful effects is exacerbated by the interaction of

each product’s features with one another and by patented technology and code design,

some of which is currently publicly unknown and hidden from users.” Id. ¶ 464. “Each

Defendant’s failure to adequately warn Plaintiffs about the risks of its defective products

-30-
Case 3:23-cv-00224-JM Document 121 Filed 03/29/24 Page 31 of 64

was a proximate cause and a substantial factor in the injuries sustained by Plaintiffs.” Id.

¶ 467.

Google, Nintendo, and Microsoft’s attempt to avoid responsibility for designing

their video games and platforms to addict children by mischaracterizing Plaintiffs’ claims

as an attempt to censor protected speech. Instead of accepting the allegations as pled,

Google, Nintendo, and Microsoft insist that Plaintiffs covertly seek to regulate content,

expression, and ideas. But Plaintiffs do not seek to impose liability for any speech—

protected or otherwise. Unlike in nearly every case Google, Nintendo, and Microsoft cite,

Plaintiffs do not seek to hold them liable for any particular content. Rather, Plaintiffs’

claims are about the defective and unreasonably dangerous design elements of Google,

Nintendo, and Microsoft’s products that make them addictive, and about their failure to

warn of their products’ risks to children and youth.

“Internet Gaming Disorder” (IGD) is a diagnosis recognized by both the American

Psychiatric Association and the World Health Organization. 12 According to a published

12 According to the World Health Organization (WHO), “[g]aming disorder is defined in the 11th Revision

of the International Classification of Diseases (ICD-11) as a pattern of gaming behavior (“digital-gaming”


or “video-gaming”) characterized by impaired control over gaming, increasing priority given to gaming
over other activities to the extent that gaming takes precedence over other interests and daily activities, and
continuation or escalation of gaming despite the occurrence of negative consequences.” The WHO states
that “for gaming disorder to be diagnosed, the behaviour pattern must be severe enough that it results in
significant impairment to a person's functioning in personal, family, social, educational, occupational or
other important areas….” The decision on inclusion of gaming disorder in ICD-11 “is based on reviews of
available evidence and reflects a consensus of experts from different disciplines and geographical
regions that were involved in the process of technical consultations undertaken by WHO in the process of
ICD-11 development.”
(https://www.who.int/standards/classifications/frequently-asked-questions/gaming-
disorder#:~:text=Gaming%20disorder%20is%20defined%20in,the%20extent%20that%20gaming%20takes
) (accessed on 3/24/24) (emphasis added). See also Am. Compl. ¶¶ 201, 202.

-31-
Case 3:23-cv-00224-JM Document 121 Filed 03/29/24 Page 32 of 64

paper in the peer-reviewed journal Addictive Behaviors, in the United States, “even by

conservative estimates . . . at least 5 million (probably many more) meet criteria for

Internet Gaming Disorder,” and those suffering with IGD “experience[e] personal, social,

and academic difficulties.”13 The criteria for diagnosing IGD parallel the criteria for

diagnosing other addictions like gambling disorder, including “preoccupation, tolerance,

withdrawal, and continued use despite clear decrements to key areas of functioning.”14

“Video games have a more pronounced addictive effect in young children[.]”15 Multiple

published and peer-reviewed studies document brain changes associated with IGD.16

13Faust, et al., Internet Gaming Disorder: A Sign of Our Times or Time for Attention?, Addictive Behaviors
77 (2018), 272–274. See also Am. Compl. ¶¶ 193, 196, 204, 213.

14Coyne, et al., Pathological Video Game Symptoms from Adolescence to Emerging Adulthood: A 6-Year
Longitudinal Study of Trajectories, Predictors, and Outcomes, Developmental Psych 2020, Vol. 56, No. 7,
1385–1396 at 1386. See also Am. Compl. ¶¶ 212, 230.

15 Griffiths, Internet and Videogame Addiction, Adolescent Addiction, Epidemiology, Assessment and
Treatment, Practical Resources for the Mental Health Professional (2008), 231-267. See also Wittek, et al.,
Prevalence and Predictors of Video Game Addiction: A Study Based on a National Representative Sample
of Gamers, Int. J. Ment. Health Addiction (2016) 14:672–686 (“Respondents in the youngest age group were
more likely to belong to the addicted group than the middle age (2.9 times more likely) and the oldest age
group (4 times more likely).”); Singh, et al., Prevalence and Risk Factors Associated with Internet Gaming
Disorder: A Cross‑Sectional Study, Ind. Psychiatry J2021;30:S172-7 (“Multivariate logistic regression found
IGD to be significantly associated with male gender and lower age at first gameplay.”). See also Am. Compl.
¶¶ 216-234.

16 Niu, et al., Meta-Analysis of Structural and Functional Brain Alterations in Internet Gaming Disorder,

Front. Psychiatry 13:1029344 (2022). (“Many neuroimaging studies have reported abnormalities in brain
structure and function in internet gaming disorder (IGD). . . . This meta-analysis showed structural and
functional impairments in brain regions related to executive control, cognitive function and reward-based
decision making in IGD.”). See also Am. Compl. ¶¶ 216-234.

-32-
Case 3:23-cv-00224-JM Document 121 Filed 03/29/24 Page 33 of 64

And multiple peer-reviewed publications have described IGD as an “addiction,”17 noting

its similarities to addictions to nicotine, alcohol, and gambling. 18

Citing numerous cases where courts have held that video games are protected

expression, Google, Nintendo, and Microsoft take the absolutist position that Section 230

and the First Amendment bars any claim for injuries caused by their video games

products. But the common law of torts can be used to hold companies liable for their

products and for their conduct in designing and marketing those products—even if the

products or conduct implicate speech—without offending Section 230 or the First

Amendment. Section 230 only applies to “liability arising from content created by third

parties.” E. Coast Test Prep LLC v. Allnurses.com, Inc., 971 F.3d 747, 752 (8th Cir. 2020)

(emphasis added). Likewise, the First Amendment limits tort claims only when they seek

to suppress or compel the expression or dissemination of ideas or content. Brown v. Ent.

Merchants Ass'n, 564 U.S. 786, 790 (2011)). Here, Plaintiffs are not targeting Nintendo,

Microsoft, or Google’s ideas or content.

17 See references cited in Ko, Internet Gaming Disorder, Curr Addict Rep (2014) 1:177–185; Griffeths, et al.,
Videogame Addiction and Its Treatment, J. Contemp. Psychother. Vol. 39, pp. 247–253 (2009); Hyun, G. J., et
al., Risk Factors Associated with Online Game Addiction: A Hierarchical Model, Computers in Human
Behavior, 48, 706–713 (2015); Gentile, Pathological Video-Game Use Among Youth Ages 8 to 18: A National
Study, Psych Sci., Vol 20, No. 5, 594-602 (2009). See also Am. Compl. ¶¶ 201-202.

18Zheng, et al, Similarities and differences between internet gaming disorder and tobacco use disorder: A
large-scale network study. Addiction Biology, Vol. 27, No. 2 (2022); Han, et al, Differences in functional
connectivity between alcohol dependence and internet gaming disorder, Addictive Behaviors, Vol. 41, pp.
12-19 (2015); Fauth-Buhler, et al Neurobiological correlates of internet gaming disorder: Similarities to
pathological gambling, Addictive Behaviors, Vol. 64, pp. 349-356 (2017). See also Am. Compl. ¶¶ 202-212, 230-
232.

-33-
Case 3:23-cv-00224-JM Document 121 Filed 03/29/24 Page 34 of 64

There is no constitutional right to design and distribute defective and

unreasonably dangerous products, much less to profit by knowingly addicting children

to those products. Google, Nintendo, and Microsoft claim to be in the business of

“creating and publishing speech” and “disseminating protected speech,” Platform Defs’

Brf. p. 24, but neither the right to make “expressive choices” in designing products like

video games, video game consoles, or online video game services, nor the right to make

“editorial judgments” in disseminating those products, Platform Defs’ Brf. p. 21, broadly

insulates those products’ unsafe features from liability based on conduct, rather than

content. Nor do those features constitute protected speech—the algorithmic “decisions”

at issue here are made by machines, not humans, and they have no Section 230 or First

Amendment protection.

B. GOOGLE, NINTENDO, AND MICROSOFT’S UTILIZATION OF ARTIFICIAL


INTELLIGENCE DOES NOT ENTITLE THEM TO SECTION 230 OR FIRST
AMENDMENT PROTECTION.

Plaintiffs have alleged that Google, Nintendo, and Microsoft collectively used AI

to recognize game player behavior which in turn uses artificial intelligence to send a

response back to the gamer. Am. Compl. ¶¶ 69, 151, 163. In fact, almost every interaction

in modern video games is controlled by AI. Section 230 does not provide immunity or

protection to AI computer programs or machines which are utilized by Google,

Nintendo, and Microsoft in the design and creation of their video game products and

downloadable content. The most basic component of freedom of expression is the right

to freedom of speech. Freedom of speech may be exercised in a direct (words) or a

symbolic (actions) way. Freedom of speech is recognized as a human right under article

-34-
Case 3:23-cv-00224-JM Document 121 Filed 03/29/24 Page 35 of 64

19 of the Universal Declaration of Human Rights. Since AI is not human there is no

Section 230 or First Amendment protection.

Additionally, other courts have declined to grant “human rights” to AI. Recently,

the Ninth Circuit addressed the issue of whether an AI created photo could be

copyrighted, and ultimately, declined copyright protection of AI created images. Thaler

v. Perlmutter, No. CV 22-1564 (BAH), 2023 WL 5333236, at *1 (D.D.C. Aug. 18, 2023).

Similarly, Section 230(c), 47 U.S.C. § 230, states “[n]o provider or user of an

interactive computer service shall be treated as the publisher or speaker of any

information provided by another information content provider.” 47 U.S.C. §

230(c)(1) (1998); see also G.G. v. Salesforce.com, 76 F.4th 544, 565 (7th Cir. 2023). Google,

Nintendo, and Microsoft are urging the Court to cloak AI in Section 230 immunity which

would require the Court to give AI the characteristics of the ability to demonstrate good

faith coupled with the ability to not follow the predesigned algorithms written into the

very code of AI existence. For the following reasons, Google, Nintendo, and Microsoft

are not protected by Section 230.

Section 230(c)(1) protects a company from publisher liability only when content is

“provided by another information content provider.” Nowhere does this provision

protect a company that is itself the information content provider. See Fair Housing Council

Of San Fernando Valley v. Roommates.Com, LLC, 521 F. 3d 1157, 1165 (9th Cir. 2008) (aka

“The Roommates Test”). Along the same lines as the court reasoned in Fair Housing,

Google, Nintendo, and Microsoft are the information content provider, and they cannot

escape liability for their own AI generated content. Additionally, AI did not exist when

-35-
Case 3:23-cv-00224-JM Document 121 Filed 03/29/24 Page 36 of 64

the CDA was passed in 1996, therefore the statute is silent on whether to afford protection

to AI. Arguably the legislative intent could not have meant to extend immunity to AI,

especially AI that has been weaponized to addict children.

As Courts have repeatedly said, Section 230 (c)(1) “does not create an ‘immunity’

of any kind.” City of Chicago v. StubHub, Inc., 624 F.3d 363, 366 (7th Cir. 2010), citing

Chicago Lawyers Comm. For Civil Rights Under Law, Inc. v. Craigslist, Inc., 519 F.3d 666, 669-

71 (7th Cir. 2008); Doe v. GTE Corp., 347 F3d 655, 660 (7th Cir. 2003). Rather, Section 230

(c)(1) “limits who may be called the publisher of information that appears online.”

StubHub, 624 F.3d at 366. In this way it functions as an affirmative defense. GTE Corp.,

347 F.3d at 657. That affirmative defense requires a civil defendant to establish three

elements: 1) the defendant is the “provider or user of an interactive computer service,” 2)

the defendant is being “treated as the publisher or speaker,” and 3) the “information

provided by another information content provider.” 47 U.S.C. § 230 (c)(1).

Here, Google, Nintendo, and Microsoft, by raising their affirmative defense in a

motion to dismiss, are improperly attempting to shift the burden of defendants’ duty to

prove an affirmative defense onto the Plaintiffs by attacking the pleadings. Regardless,

an affirmative defense is grounds for dismissal at the pleading stage only if the plaintiff

pleads itself out of court—that is, admits all the ingredients of an impenetrable defense.

See Lackie Drug Store, Inc. v. Ark. CVS Pharm., LLC, Case No. 4:20-cv-1515-JM, 2022 U.S.

Dist. LEXIS 199594, *12 (E.D. Ark. Nov. 2, 2022); Weatherly v. Ford Motor Co., 994 F.3d 940,

943 (8th Cir. 2021). Plaintiffs have not pled themselves out of court here.

-36-
Case 3:23-cv-00224-JM Document 121 Filed 03/29/24 Page 37 of 64

Regardless, and contrary to Google, Nintendo, and Microsoft’s claims, Plaintiffs

do not allege any content allegations against any Defendant as a publisher or speaker.

Plaintiffs' claims do not depend on any of the Defendants having published or spoken

anything nor any content. Plaintiffs seek to hold Google, Nintendo, and Microsoft

accountable for designing video game products and for supporting an AI engine that

hosted addictive algorithms for the sole purpose of expanding Google, Nintendo, and

Microsoft’s business through the addiction of Plaintiffs and many others. This includes

other game creators and co-defendants with technology, designing tailored software with

AI for video games played by the Plaintiffs that were specifically designed to keep minors

addicted to video games, aiding in the method of delivery by hosting the AI, assisting

game developers and co-defendants in managing their customer relationships,

optimizing their business operations, enhancing their profitability, and enabling game

developers and platforms "to scale its operations and increase the number of addicted

minors. See Am. Compl. ¶¶ 108, 124, 137, 142, 161, 547, 637. In other words, Plaintiffs are

seeking to hold Google, Nintendo, and Microsoft "liable under for its own acts or

practices, rather than for publishing content created by another.” Cf. G.G. v. Salesforce.com,

76 F.4th 544, 567 (7th Cir. 2023).

Even if the Court proceeds with Section 230 analysis, Google, Nintendo, and

Microsoft would still fail to have immunity based upon a Section 230 conduct exception.

The CDA outlines the obligations of interactive computer services as follows:

-37-
Case 3:23-cv-00224-JM Document 121 Filed 03/29/24 Page 38 of 64

OBLIGATIONS OF INTERACTIVE COMPUTER SERVICE

A provider of interactive computer service shall, at the time of entering


an agreement with a customer for the provision of interactive computer
service and in a manner deemed appropriate by the provider, notify
such customer that parental control protections (such as computer
hardware, software, or filtering services) are commercially available
that may assist the customer in limiting access to material that is
harmful to minors. Such notice shall identify, or provide the customer
with access to information identifying, current providers of such
protections.

Thus, Google, Nintendo, and Microsoft have an express codified duty to provide

notification to parents of controls and assist the parents of limiting access to material that

is harmful to minors.

Here, Plaintiffs have plead that the Platform Defendants have not done that and

that, to the extent Google, Nintendo, and Microsoft purport to have parental controls,

have alleged that those parental controls have not been effective for parents to limit or

control minors’ video game play. See, e.g., Am. Compl. ¶¶ 443, 548. Other wrongful

conduct pled by Plaintiffs include allegations that Google, Nintendo, and Microsoft

engaged in deceptive and unconscionable trade practices, and such practices are

prohibited by the Arkansas Deceptive Trade Practices Act ("ADTPA"). See, e.g., id. ¶¶ 543,

545, 551, 580-582, 589. Plaintiffs also allege Google, Nintendo, and Microsoft have

engaged in negligent, fraudulent, and outrageous conduct—particularly with respect to

their actions regarding users under the age of 13 due to the recognized safety risks posed

to such users from interactive online products—and that conduct has harmed G.D. and

the Dunns. See, e.g., id. ¶¶ 549, 583. Plaintiffs’ allegations involve and are specific to

Google, Nintendo, and Microsoft’s respective products—and their acting in concert with

-38-
Case 3:23-cv-00224-JM Document 121 Filed 03/29/24 Page 39 of 64

the other Defendants to cause such harm. See, e.g., id. ¶¶ 595, 597, 668-670. These

allegations all relate to Google, Nintendo, and Microsoft’s actions and conduct in relation

to the design and dissemination of their product, not speech or content. Accordingly,

Section 230 and the First Amendment do not apply.

C. THE FIRST AMENDMENT DOES NOT PREVENT LIABILITY FOR DESIGNING AND
DISSEMINATING DEFECTIVE PRODUCTS – EVEN PRODUCTS THAT TOUCH UPON
SPEECH.

The First Amendment does not provide “special immunity from the application of

general laws” for those who engage in some activities that ordinarily receive

constitutional protection. Cohen v. Cowles Media Co., 501 U.S. 663, 670 (1991); Planned

Parenthood Found. Of Am., Inc. v. Newman, 51 F.4th 1125, 1134 (9th Cir. 2022) (“Invoking

journalism and the First Amendment does not shield [journalists] from liability for

violations of laws applicable to all members of society.”). Google, Nintendo, and

Microsoft’s position that the First Amendment protects them from liability “for

disseminating protected speech,” Platform Defs’ Brf., p. 24, obscures the point: Google,

Nintendo, and Microsoft’s tortious conduct is not constitutionally protected speech.

Plaintiffs allege that Google, Nintendo, and Microsoft are liable for designing

defective and unreasonably dangerous products; for concealing, misleading, and failing

to warn customers of the risks of using those products; and for failing to provide adequate

instructions as to their safe use—just as any product maker would be. Despite

Defendants’ arguments to the contrary, these claims do not implicate the First

Amendment. Like journalists, video game creators and platforms “ha[ve] no special

privilege to invade the rights and liberties of others.” Cohen, 501 U.S. at 670.

-39-
Case 3:23-cv-00224-JM Document 121 Filed 03/29/24 Page 40 of 64

Courts have made clear that the First Amendment does not bar a tort claim—even

one that touches upon protected expression—provided the plaintiff is not seeking to

impose liability for simply expressing an idea. See, e.g., Dietemann v. Time, Inc., 449 F.2d

245, 249 (9th Cir. 1971); Cohen, 501 U.S. at 670; Planned Parenthood, 51 F.4th at 1134; see also

Risenhoover v. England, 936 F. Supp. 392, 405 (W.D. Tex. 1996) (“Practically every tort claim

involves some form of communication. A plaintiff is not divested of a cause of action by

the First Amendment merely because a tortfeasor speaks.”). In Dietemann, for example,

the Ninth Circuit held that a newspaper could be liable for invasion of privacy where its

journalists used subterfuge to enter a private home and secretly recorded an individual

suspected of committing a crime. 449 F.2d at 249. The court rejected the newspaper’s

argument that the First Amendment shielded it from liability because its journalists were

engaging in a protected activity—gathering news—when they committed the tort. Id.

(“The First Amendment has never been construed to accord newsmen immunity from

torts or crimes committed during the course of newsgathering.”). Similarly, in Cohen, the

Supreme Court held that a newspaper could be liable in promissory estoppel for printing

the name of a source whose identity it had promised to keep confidential. 501 U.S. at 670.

Critical to the Court’s analysis was the fact that promissory estoppel is a common law

rule of general applicability, not one crafted to single out the press. Id.; see also Planned

Parenthood (upholding a jury verdict against journalists because “[n]one of the laws [they]

violated was aimed specifically at journalists or those holding a particular viewpoint”).

Similarly, in this case, Google, Nintendo, and Microsoft cannot use the First Amendment

(or Section 230) to shield their bad conduct.

-40-
Case 3:23-cv-00224-JM Document 121 Filed 03/29/24 Page 41 of 64

To be clear, Plaintiffs do not allege that the Google, Nintendo, and Microsoft’s

products are addictive based on any “ideas,” “plots,” “characters,” or other “content”

contained in their video games or on their platforms. Plaintiffs’ claims would not require

the Google, Nintendo, and Microsoft to refrain from marketing their products as long as

they provided adequate warnings about the risks of those products. Plaintiffs’ claims

have no impact on speech, expression, or content.

Yet, Defendants try to rewrite Plaintiffs’ allegations in order to blur the line

between claims targeting ideas or content and claims targeting unreasonably dangerous

(and avoidable) design features and inadequate warnings. The latter, which are the

claims brought by Plaintiffs, are viable.

D. GOOGLE, NINTENDO, AND MICROSOFT DO NOT HAVE A CONSTITUTIONAL


RIGHT TO DESIGN DEFECTIVE PRODUCTS AND SERVICES.

Microsoft, Nintendo, and Google insist that because their products contain some

content that constitutes protected expression, Plaintiffs’ claims must be about that

content. But, as in other cases where a defendant’s business involved some protected

expression, “[t]here is a clear distinction between the alleged conduct on which the

plaintiffs’ liability may rest”—here, the defective design of the Google, Nintendo, and

Microsoft’s products— “and the evidence used to establish the elements of the claims”—

the protected expression that may be contained in the video games the Platform

Defendants’ products are intended to be used with. See Allen v. Am. Cyanamid, 527 F.

Supp. 3d 982, 994 (E.D. Wis. 2021). In Allen, a lead paint manufacturer sought summary

judgment of “every claim that [wa]s based upon protected First Amendment activity,”

-41-
Case 3:23-cv-00224-JM Document 121 Filed 03/29/24 Page 42 of 64

arguing that the plaintiffs sought to hold it liable for “truthful commercial speech, in the

form of advertisements,” and other “constitutionally-protected conduct.” Id. The court

rejected that argument because the plaintiffs’ alleged injuries stemmed from the

defendant’s “unreasonably dangerous product,” not from its protected expression

related to that product. Id. Allen thus illustrates that a product liability claim that touches

upon protected expression speech can move forward as long as the liability arises from

the defendant’s defective product design, not its expression. See id.; see also Martinez v.

Metabolife Internat., Inc., 113 Cal. App. 4th 181, 188 (Cal. Ct. App. 2003) (rejecting

application of anti-SLAPP statute because, inter alia, the defendant “cite[d] no authority

holding [that] the First Amendment protects the manufacturer or seller of an unsafe

product from liability for injuries caused by defects in that product”).

Even if holding Defendants liable for the harms caused by their defective products

were to have “incidental effects” on some protected expression, the First Amendment

would not bar Plaintiffs’ claims. See Cowles, 501 U.S. at 669. It is black letter law that “the

First Amendment does not prevent restrictions directed at commerce or conduct from

imposing incidental burdens on speech.” Int'l Outdoor, Inc. v. City of Troy, Michigan, 974

F.3d 690, 705 (6th Cir. 2020) (quoting Sorrell v. IMS Health Inc., 564 U.S. 552, 567 (2011)).

This principle holds true even if the person engaging in the conduct “intends thereby to

express an idea.” Lichtenstein v. Hargett, 83 F.4th 575, 583 (6th Cir. 2023) (quoting United

States v. O’Brien, 391 U.S. 367, 376 (1968)).

This distinction between torts that are aimed at ideas and those that are aimed at

conduct (but affect speech) is analogous to the distinction that applies to statutory

-42-
Case 3:23-cv-00224-JM Document 121 Filed 03/29/24 Page 43 of 64

restrictions on speech. “When ‘speech’ and ‘nonspeech’ elements are combined in the

same course of conduct, a sufficiently important governmental interest in regulating the

non-speech element can justify incidental limitations on First Amendment freedoms.”

O’Brien, 391 U.S. at 376. “It is evident beyond the need for elaboration that a State’s

interest in safeguarding the physical and psychological well-being of a minor is

compelling.” New York v. Ferber, 458 U.S. 747, 756-57 (1982) (cleaned up); see also Ginsberg

v. State of N.Y., 390 U.S. 629, 639-40 (1968) (holding that the government’s interest in the

“well-being of its youth” and in supporting “parents’ claim to authority in their own

household” justified the regulation of otherwise protected expression”).

E. GOOGLE, NINTENDO, MICROSOFT DO NOT HAVE A CONSTITUTIONAL


AND
RIGHT TO CONCEAL, MISLEAD, OR PROVIDE INCOMPLETE INFORMATION
ABOUT THE RISKS OF USING THEIR DEFECTIVE PRODUCTS.

Google, Nintendo, and Microsoft argue that the First Amendment also “bars

claims premised on an alleged failure to warn about the purportedly addictive or harmful

nature of [video] games,” contending that “[c]ourts routinely dismiss claims that would

require those who publish or disseminate speech to warn about its supposed dangers.”

Platform Defs’ Brf. p. 26. But, unlike the cases relied upon by the Platform Defendants,

this case is about the failure to warn about dangerous product designs or the risk of harm

(addiction) based on product design elements---not dangerous ideas or content. Therefore,

contrary to Defendants’ position, Plaintiffs’ failure to warn claim is entirely content

agnostic. Plaintiffs do not allege that Defendants should have warned users about any

particular content contained in their video game products (or the video games played

and accessed using those products). Rather, Plaintiffs seek to hold Google, Nintendo, and

-43-
Case 3:23-cv-00224-JM Document 121 Filed 03/29/24 Page 44 of 64

Microsoft liable for their failure to warn users about the risks of the defectively designed

features in their respective video game products 19 that make the games dangerously

addictive and harmful to users (particularly minors) developing brains. See, e.g., Am.

Compl. ¶¶ 287, 291, 318, 320, 361, 363, 593-97, 610-14, 623-25.

Google, Nintendo, and Microsoft attempt to avoid liability for their failure to warn

customers about the defective and unreasonably dangerous products they hosted on their

platforms by comparing those defective products to “books” and their platforms to

“bookstores.” See Platform Defs’ Brf. p. 26 (“Just as plaintiffs could not sue a bookstore

for selling addictive books, they could not sidestep the First Amendment by alleging that

the bookstore failed to warn the public that a popular book series may lead to an

unhealthy addiction to reading.”) But this comparison makes no sense—no book contains

“predatory monetization schemes” and patented addictive technologies like those

embedded in the products at issue here. See Am. Compl. ¶¶ 129-38, 151.

Indeed, “there is no case authority for the proposition that the First Amendment

provides immunity for defendants in failure to warn cases.” In re Factor VIII or IX

Concentrate Blood Prod. Litig., 25 F. Supp. 2d 837, 848 (N.D. Ill. 1998). “[A]dopting

[Defendants’] view of the First Amendment would ignore decades of tort law, dating

back to at least 1892, holding that manufacturers can be liable for failing to warn

19As a reminder, the vídeo game products at issue in this case are: (1) Nintendo’s Switch and eShop; (2)
Microsoft’s Xbox Series X, Xbox (Microsoft) Store, Xbox Game Pass Ultimate, and Xbox Cloud Gaming; and
(3) Google’s Google Play. See SOF, §III(B)-(D), supra.

-44-
Case 3:23-cv-00224-JM Document 121 Filed 03/29/24 Page 45 of 64

consumers about the dangers of their products.” See id. (citing Schubert v. J.R. Clark Co.,

49 Minn. 331, 336, 51 N.W. 1103, 1104 (1892)).

Indeed, “there is no case authority for the proposition that the First Amendment

provides immunity for defendants in failure to warn cases.” In re Factor VIII or IX

Concentrate Blood Prod. Litig., 25 F. Supp. 2d at 848. “[A]dopting [the Platform

Defendants’] view of the First Amendment would ignore decades of tort law, dating back

to at least 1892, holding that manufacturers can be liable for failing to warn consumers

about the dangers of their products.” See id. (citing Schubert v. J.R. Clark Co., 49 Minn. 331,

336, 51 N.W. 1103, 1104 (1892)).

F. THE DEFECTIVE FEATURES IN GOOGLE, NINTENDO, AND MICROSOFT’S PRODUCTS


ARE NOT PROTECTED EXPRESSION.

Google, Nintendo, and Microsoft’s First Amendment defense ultimately boils

down to one argument: that Plaintiffs’ claims are barred because they target video games,

and video games are constitutionally protected speech. See Platform Defs’ Brf. p. 24 (citing

Brown, 564 U.S. at 790). But Plaintiffs’ harms do not stem from any messages, ideas,

subject matter, or content contained in the video games designed and hosted by

Defendants. See id. at 790-91. They stem from defective features that Defendants designed

to addict young users and maximize engagement and profit.

These defective features include:

• “Microtransactions,” Am. Compl. ¶¶ 95-113, and related design strategies


that incentive users to make impulsive purchases of in-game items by, for
example:

-45-
Case 3:23-cv-00224-JM Document 121 Filed 03/29/24 Page 46 of 64

o Suggesting that a special item is only available for a short amount of


time and must be obtained within that small window of time, id. ¶¶
109, 117;

o Suggesting that only a small number of special items are available


and that users must act quickly if they want that item, id. ¶ 117;

o Convincing users they are about to win, but only if they keep
playing, id.;

o Encouraging users to keep playing to get back money they lost, id. ¶
117;

• “Predatory monetization schemes,” such as:

o “Loot boxes” that contain a random selection of virtual items—likely


determined by algorithms—which may or may not give users who
purchase them an advantage in the game, id. ¶¶ 129-38;

o “Rubber-banding” algorithms that dynamically adjust game


difficulty, as well as prices and value of virtual items, based on
individual user data, including spending power and cost sensitivity,
id. ¶¶ 120-27, 139-44;

o “Pay-to-win” models that give users who are willing to shell out
more money a disproportionate advantage over other users, id. ¶¶
145-48;

• Patented addictive technologies, including:

o “Upsell messages” that encourage users to make in-game purchases


when they face a difficult scenario, id. ¶ 151 (U.S. Patent No.
8,360,866 B2);

o Algorithms that customize messages for each user based on that


user’s individual “behavior data,” id. (U.S. Patent No. 10,099,140 B2);

o Algorithms that modify the difficulty of multiplayer matches to


encourage in-game purchases, id. (U.S. Patent No. 9,789,406 82);

o Algorithms that use a “user spend parameter value” to “determine


which users should be provided with access to an exclusive virtual

-46-
Case 3:23-cv-00224-JM Document 121 Filed 03/29/24 Page 47 of 64

section of the online game” in order to “extract additional value from


users inclined to spend money,” id. (U.S. Patent No. 9,623,335 Bl);

o Algorithms that modify the pricing of in-game virtual items based


on users’ experience and progress, id. (U.S. Patent No. 9,138,639 Bl);

o Algorithms that capitalize on a user’s tendency to purchase an item


after investing significant time into the game, id. (U.S. Patent No.
702,523 B2);

o Algorithms that allow new users to purchase in-game support more


cheaply than experienced users, id. (U.S. Patent No. 9,795,886 Bl);

o Algorithms that encourage users to make purchases outside of a


game to receive in-game benefits, id. (U.S. Patent No. 10,252,170 B2);

o Gaming devices that capture audio signals from media content


played concurrently with video games and use “content recognition
techniques” to identify the media content and “unlock ‘premium' in-
game content that augment gameplay,” id. (U.S. Patent No.
10,569,171 B2);

o Algorithms that monitor user gameplay performance and encourage


users to make purchases on multiple game platforms by providing
incentives for such “cross platform game play,” id. (U.S. Patent No.
9,403,093 B2);

o Time-limited event-based virtual currencies that become unusable


by or unavailable to users who paid for them, id. (U.S. Patent No.
9,626,475 Bl);

o Algorithms that make offers that decrease in value as other users


accept them to create a sense of urgency, id. (U.S. Patent No.
9,666,026 Bl);

o Algorithms that adjust “virtual item bundles” made available to


users based on user gameplay information, id. (U.S. Patent No.
9,808,708 Bl);

• Ineffective age and identity verification protocols, id. ¶¶ 443, 547;

-47-
Case 3:23-cv-00224-JM Document 121 Filed 03/29/24 Page 48 of 64

• Ineffective parental controls and notifications, id. ¶ 443;

• Lack of any means for users to limit gametime or spending, id.

It is not just video games that use these addictive technologies; the Platform Defendants

used them in the design of their video game products too. See, e.g., Am. Compl. ¶¶ 4, 7,

28-30, 68, 69, 92, 100, 103, 108-113, 120-123, 181-188, 189 374, 395-396, 406. In fact, Microsoft

owns one of the patents used for these monetization schemes that are causing G.D. and

other users harm. Id. ¶151(f). Microsoft cannot claim Section 230 or First Amendment

immunity from harms caused by the use of these AI technologies and addictive

mechanisms in the design of their Xbox Series X, Xbox Store, Xbox Game Pass Ultimate,

and Xbox Cloud Gaming. See id. ¶¶ 68, 163-164, 364-386. Nor can Nintendo, who used

the technologies in its Switch and eShop, id. ¶¶ 68, 163-164, 387-398, or Google, who use

the technologies in its Google Play, id. ¶¶ 68, 163-164, 399-407.

Moreover, the Platform Defendants do not even attempt to articulate the “ideas”

and “messages” supposedly communicated through these defective technical and AI

features. This is because they cannot. The truth is that the defective features designed

into Google, Nintendo, and Microsoft’s video game products—and in the video games

G.D. plays—do not communicate anything at all. That Defendants could address these

defects without changing anything about the content of the games being played—i.e.,

without changing any of the ideas and messages expressed through the games’

characters, dialogue, plots, narratives, pictures, art, music, and other interactive

features—proves that the defective features do not constitute protected expression.

-48-
Case 3:23-cv-00224-JM Document 121 Filed 03/29/24 Page 49 of 64

Further, many of the defective features involve decisions made by algorithms, not

humans. Google, Nintendo, and Microsoft assume—without acknowledging the issue—

that algorithms must be treated as the equivalent of human speech. But it is far from a

foregone conclusion that algorithms are entitled to First Amendment protection. The First

Amendment protects the freedom to think and speak as inalienable human rights. W. Va.

State Bd. of Educ. v. Barnette, 319 U.S. 624, 642 (1943). Leading scholars have explained the

deeply concerning consequences of assuming machine speech is legally equivalent to,

and deserving of the same constitutional rights as, human speech. See, e.g., Tim Wu,

Machine Speech, 161 U. Pa. L. Rev. 1495, 1496 (2013); Helen Norton, Manipulation and

the First Amendment, 30 Wm. & Mary Bill Rts. J. 221, 223 (2021). And courts have not

treated computer code’s functional elements as speech in other contexts. See, e.g.,

Universal City Studios, Inc. v. Corley, 273 F.3d 429, 451 (2d Cir. 2001) (observing that a

programmer’s use of code to communicate with a computer is “never protected” under

the First Amendment); Commodity Futures Trading Comm'n v. Vartuli, 228 F.3d 94, 111 (2d

Cir. 2000) (reasoning that while the interaction between “programming commands” as

“triggers” and semiconductors as “conduits” is technically a form of “communication,”

it is not protected “speech” under the First Amendment). There is no reason to depart

from that approach here.

G. THE FIRST AMENDMENT IS AN AFFIRMATIVE DEFENSE THAT THE COURT SHOULD


NOT RESOLVE IN DEFENDANTS’ FAVOR ON A MOTION TO DISMISS.

The First Amendment is an affirmative defense, and a court may only dismiss a

claim based on an affirmative defense if it is clear from the face of the complaint that the

-49-
Case 3:23-cv-00224-JM Document 121 Filed 03/29/24 Page 50 of 64

claim is barred. Lackie Drug Store, 2022 U.S. Dist. LEXIS 199594, at *12; Weatherly, 994 F.3d

at 943. However, a plaintiff need not plead facts to negate an affirmative defense. Perry v.

Merit Sys. Prot. Bd., 582 U.S. 420, 435 n.9 (2017); Lackie Drug Store, 2022 U.S. Dist. LEXIS

199594, at *12. Thus, and because “all the circumstances of the speech,” as revealed by

“the whole record,” are relevant to whether a claim is barred by the First Amendment,

dismissal would be improper at this stage. See Snyder v. Phelps, 562 U.S. 443, 453-54 (2011);

City of Los Angeles v. Preferred Commc’ns, Inc., 476 U.S. 488, 495 (1986) (declining to decide

a First Amendment dispute on a motion to dismiss, citing the need for “fuller

development of the disputed issues in the case.”).

II. THERE IS NO BASIS TO DISMISS ANY OF PLAINTIFFS’ CLAIMS.

A. GOOGLE, NINTENDO, AND MICROSOFT CANNOT AVAIL THEMSELVES OF THE


ADTPA’S SAFE HARBOR PROVISION.

The Arkansas Deceptive Trade Practices Act (“ADTPA”) contains a private cause

of action for any person who suffers “an actual financial loss as a result of his or her

reliance on the use of a practice declared unlawful by this chapter … to recover his or her

actual financial loss proximately caused by the offense or violation.” ARK. CODE ANN. §

4-88-113(f)(1)(A); see also Parnell v. FanDuel, Inc., 2019 Ark. 412, 591 S.W.3d 315. Violations

of the ADTPA can occur in a number of ways. ARK. CODE ANN. §§ 4-88-107, 4-88-108(a),

4-102-101(a), 4-102-105.

Google, Nintendo, and Microsoft have violated the ADTPA. See Am. Compl. ¶¶

575-590. To avoid defending these claims, the Platform Defendants argue that they are

protected from these claims by the ADTPA’s “safe harbor provision,” ARK. CODE ANN. §

-50-
Case 3:23-cv-00224-JM Document 121 Filed 03/29/24 Page 51 of 64

4-88-101(2), which states the ADTPA does not apply to “[b]roadcasters, printers,

publishers, and other persons engaging in the dissemination of information who do not

have actual knowledge of the intent, design, purpose, or deceptive nature of the

advertising or practice.” See Platform Defs’ Brf. pp. 27-28. That “safe harbor provision”

has no application to Plaintiffs’ ADTPA claims against Google, Nintendo, and Microsoft.

Plaintiffs’ ADTPA claims are not based on the Platform Defendants’ dissemination

of third-party content; the ADTPA claims are based on Google, Nintendo, and Microsoft’s

deceptive and unconscionable trade practices in connection with the sale and

advertisements of each defendant’s gaming products. See Am. Compl. ¶ 589, see also id.

¶¶ 577-590 (Plaintiffs’ ADTPA claim). The Platform Defendants’ gaming products at

issue here are:

• Nintendo: Switch (gaming console); Nintendo eShop (online gaming


store), Am. Compl. ¶¶ 30, 62, 387-398;

• Microsoft : Xbox Series X (gaming console); Xbox (Microsoft) Store


(online gaming store); Xbox Game Pass Ultimate (online cloud gaming
platform and subscription service); Xbox Cloud Gaming (online cloud
gaming platform), id. ¶¶ 28-30, 58, 364-386;

• Google: Google Play (online cloud gaming platform), id. ¶¶ 38, 399-407.

Plaintiffs have specifically alleged Google, Nintendo, and Microsoft violated the ADTPA

in connection with the advertising and selling of these products to consumers. See id. ¶¶

575-590. Accordingly, section 4-88-101(2) does not apply to Plaintiffs’ ADTPA claims

against Google, Nintendo, and Microsoft.

Google, Nintendo, and Microsoft also cannot use section 4-88-101(2) as a shield to

liability for the dissemination of any information related to the video games played on or

-51-
Case 3:23-cv-00224-JM Document 121 Filed 03/29/24 Page 52 of 64

available on their gaming platforms, Platform Defs’ Brf. pp. 27-28, because Google,

Nintendo, and Microsoft were each aware that the Game Defendants and Ubisoft were

engaging in unlawful, deceptive, wrongful, and harmful conduct in connection with the

design of their video games and acted in concert with the Game Defendants and Ubisoft

in deceiving the public about the danger their video game products pose to users, Am.

Compl. ¶¶ 59, 63, 65, 67-70, 397, 407, 668-670.

Accordingly, Plaintiffs’ ADTPA claims against Google, Nintendo, and Microsoft

cannot be dismissed.

B. GOOGLE, NINTENDO, AND MICROSOFT’S VIDEO GAME PLATFORMS ARE PRODUCTS


SUBJECT TO THE ARKANSAS PRODUCTS LIABILITY ACT.

The Arkansas Product Liability Act of 1979 defines a “product liability action” to

include strict liability actions brought for personal injuries “caused by or resulting from

the manufacture, construction, design, formula, preparation, assembly, testing, service,

warning, instruction, marketing, packaging, or labeling of any product.” ARK. CODE ANN.

§ 16-116-202(5). Product suppliers are subject to liability for harm when they are (1)

engaged in the business of manufacturing, assembling, selling, leasing, or otherwise

distributing the product; (2) the product was supplied in by [them] in a defective

condition that rendered it unreasonably dangerous; and (3) the defective condition was

a proximate cause of the harm to a person or to property.” ARK. CODE ANN. § 16-116-

101(a). “Supplier” is defined to include “any individual or entity engaged in the business

of selling a product, whether the sale is for resale or for use or consumption,” and

“includes a retailer, wholesaler, or distributor.” ARK. CODE ANN. § 16-116-202(6)(A)-(B).

-52-
Case 3:23-cv-00224-JM Document 121 Filed 03/29/24 Page 53 of 64

A “product” is “any tangible object or goods produced, excluding real estate and

improvements thereon.” ARK. CODE ANN. § 16-116-202(4). “Tangible” is not defined by

statute; therefore, the common meaning of the word is applied when determining

whether a statute applies. See Williams v. Baptist Health, 598 S.W.3d 487, 495 (Ark. 2020)

(“The first rule in considering the meaning and effect of a statute is to construe it just as

it reads, giving words their ordinary and usually accepted meaning in common

language.”). A common meaning of “tangible” is “real and not imaginary; able to be

shown, touched, or experienced,” or “real and able to be shown or touched.”20 Consistent

with that definition, the Arkansas General Assembly, in other contexts, has defined

“tangible objects” as “items which can be held, seized, transported, or otherwise moved.”

Engelhardt v. Rogers Group, Inc., 132 F. Supp. 2d 757, 760 n7 (E.D. Ark. Feb. 21, 2001) (citing

ARK. CODE ANN. §§ 17-14-103(13), 25-15-208, 20-77-904(a)). The General Assembly has

also, in other contexts, defined “goods” as “all things which are moveable at the time of

identification to the contract for sale other than the money in which the price is to be paid,

investment securities, and things in action.” ARK. CODE ANN. § 4-2-105(1).

i. NINTENDO AND MICROSOFT’S VIDEO GAME CONSOLES ARE “PRODUCTS”

The Nintendo Switch is a handheld console device that allows a user to play a

physical copy of a video game, like Fortnite, and allows for online game play and online

game purchases. Am. Compl. ¶¶ 62, 387; see also Nintendo Switch™ Family - Nintendo -

Official Site, available at https://www.nintendo.com/us/switch/ (last accessed March

20Cambridge Online Dictionary,“tangible,” available at


https://dictionary.cambridge.org/dictionary/english/tangible#google_vignette

-53-
Case 3:23-cv-00224-JM Document 121 Filed 03/29/24 Page 54 of 64

29, 2024). The Switch is a “tangible object or good produced” and, therefore, is a product

under ARK. CODE ANN. § 16-116-202(4).

The Xbox Series X is the fourth generation of consoles in the Xbox series, released

in November of 2020. The Xbox Series X is backwards-compatible with nearly all Xbox

One-compatible games and accessories, allowing users to play any game—even older

games—designed, developed, manufactured, and sold to be played on most Xbox

consoles. In addition to playing physical copies of games on the Xbox Series X, users can

also download games from the Xbox Store, or play through Xbox Cloud Gaming with a

Game Pass subscription. Am. Compl. ¶¶ 365-366. 21 Xbox Series X is a “tangible object or

good produced” and, therefore, is a product under ARK. CODE ANN. § 16-116-202(4).

ii. GOOGLE, NINTENDO, AND MICROSOFT’S ONLINE VIDEO GAME PLATFORMS


ARE “PRODUCTS”

Nintendo eShop is an online video game platform that allows users to purchase

and download for play on the Switch. It is a part of the Switch. Once a game is

downloaded from the eShop, the video game is downloaded and installed on the Switch.

The eShop is designed with AI bots and other technologies to target users to purchase

specific games. Because of this addictive design and its inclusions as a component of the

Nintendo Switch, the eShop is a “tangible good” for purposes of Section 16-116-202(4)

and strict liability.

21See also Microsoft’s website, available at: https://www.xbox.com/en-US/consoles/xbox-series-x (last


accessed March 29, 2024).

-54-
Case 3:23-cv-00224-JM Document 121 Filed 03/29/24 Page 55 of 64

Microsoft’s online video game platforms—Xbox Store, Xbox Game Pass Ultimate,

and Xbox Cloud Gaming—are “tangible objects and goods” produced by Microsoft for

use with its Xbox gaming consoles, personal computers, and mobile phones. Through the

Xbox Store, users can download games and certain downloadable content for said games.

Microsoft markets this store as “safe” for the whole family to use, regardless of the

harmful addictive content built into these products. Id. ¶¶ 366-67. Xbox Game Pass is a

paid tiered-subscription service offered by Microsoft that provides users access to online

games. While services are not normally considered products, the highest Xbox Game Pass

tier—Xbox Game Pass Ultimate—used by G.D. and which provides access to Xbox Cloud

Gaming.

Xbox Cloud Gaming operates by linking a user’s device to a remote server in the

cloud, thereby allowing users to save gameplay in the cloud and access the gameplay

from numerous devices at any given location. With Xbox Cloud Gaming, a user no longer

needs an Xbox console to play games; instead, they can access the games from a number

of devices including mobile devices and laptops. Id. ¶¶ 372-76. Xbox Cloud Gaming is a

tangible object and good that allows users to play video games in the same manner as on

a physical console. The patented AI technologies used in designing Xbox Cloud Gaming,

and Xbox Store and Xbox Game Pass, do more than just allow users to connect with video

games, content, or other users. Xbox Cloud Gaming, Xbox Game Pass, and Xbox Store are

built using bots and tangible technologies produced by Microsoft. As such, they meet the

definition of products in ARK. CODE ANN. § 16-116-202(4).

-55-
Case 3:23-cv-00224-JM Document 121 Filed 03/29/24 Page 56 of 64

Google Play is an online video game platform, designed using the same AI

technologies as Microsoft and Nintendo’s online platforms, and functions as a way for

users to download certain games and play them on Android mobile devices. Am. Compl.

¶ 399. Google Play—once downloaded and installed on a user’s Android phone--

essentially turns a user’s phone into a gaming console. If a user decides they no longer

want their phone to be a gaming console, then Google Play can be deleted from the

device. Accordingly, Google Play is a “tangible object” produced by Google and,

therefore, is a product under Section 16-116-202(4).

iii. PLAINTIFFS HAVE PLAUSIBLY ALLEGED DEFECTS IN THE PLATFORMS.

Google, Nintendo, and Microsoft take issue with the defects alleged to exist in their

products and seek dismissal based on alleged insufficiencies in Plaintiffs’ pleading. No

such insufficiencies exist, see Am. Compl. ¶¶ 430-455 (design defect), ¶¶ 456-472

(inadequate warning), as is explained throughout this Response. Plaintiffs’ strict liability

are viable under Arkansas law and have been sufficiently pled. Google, Nintendo, and

Microsoft’s request to dismiss Plaintiffs’ strict liability causes of action should be denied.

C. GOOGLE, NINTENDO, AND MICROSOFT OWE A DUTY OF CARE TO PLAINTIFFS

“Under Arkansas law, negligence is defined as the failure to do something that a

reasonably careful person would do, or the doing of something that a reasonably careful

person would not do, under the circumstances.” Boerner v. Brown & Williamson Tobacco

Co., 126 F.Supp.2d 1160, 1168 (E.D. Ark. 1999). To state on a negligence claim, the plaintiff

must show “a duty was owed and that the duty was breached which proximately caused

injuries.” Id. “Duty is a concept which arises out of the recognition that relations between

-56-
Case 3:23-cv-00224-JM Document 121 Filed 03/29/24 Page 57 of 64

individuals may impose upon one a legal obligation for the other.” Shannon v. Wilson, 329

Ark. 143, 158, 947 S.W.2d 349, 356 (1997). It is always a question of law as to whether a

duty exists. Yanmar Co., Ltd. v. Slater, 2012 Ark. 36, at 17, 386 S.W.3d 439, 449.

Nintendo is the designer, developer, manufacturer, publisher, supplier, and

vendor of the Nintendo Switch game console and Nintendo eShop, and is a vendor of

first-party and third-party video games. Am. Compl. ¶¶ 62-63, 387-394. Microsoft is the

designer, developer, manufacturer, publisher, supplier, and vendor of the Xbox Series X

game console, Xbox Store, Xbox Game Pass Ultimate, and Xbox Cloud Gaming, and is a

vendor of first-party and third-party video games. Id. ¶¶ 58-60, 364-365, 368-374. Google

is the designer, manufacturer, developer, publisher, and supplier of Google Play, and is

a vendor of first-party and third-party video games. Id. ¶¶ 65, 399, 405. As such, Google,

Nintendo, and Microsoft owed a duty to foreseeable Arkansas consumers of those video

game products, like G.D. and the Dunns.

Google, Nintendo, and Microsoft owed the following duties under Arkansas law:

• A manufacturer22 of a product has a duty to use ordinary care in its


design and to package it in order to protect those who will use it and
who are in the area of its use from unreasonable risk of harm while it is
being used for its intended purpose or while it is being used for its
intended purpose or while it is being used for any purpose which
should reasonably be expected by the manufacturer. AMI 1101;

• A manufacturer has a duty to give a reasonable and adequate warning


of dangers inherent or reasonably foreseeable in the use of its product
for a purpose and in a manner which the manufacturer should
reasonably foresee. AMI 1002;

22 In Arkansas, “‘manufacturer’ means the designer, fabricator, producer, compounder, processor, or


assembler of any product or its component parts.

-57-
Case 3:23-cv-00224-JM Document 121 Filed 03/29/24 Page 58 of 64

• A vendor who sells a product which it knows or has reason to know is


likely to be dangerous when used in the manner or for the purpose for
which it was designed has a duty to give a reasonable and adequate
warning of that danger. AMI 1005;

• A manufacturer of a product has a duty to give reasonable and adequate


instructions with respect to the conditions and methods of its safe use
when danger is reasonably foreseeable in its use, unless the danger is
known to the user or is reasonably discoverable by them. AMI 1003;

• A company owes a duty of ordinary care, or a duty to act with the care
a reasonably careful person would use under circumstances similar to
those shown by the evidence. AMI 303; and

• A company who knows, or reasonably should know, that a child may


be affected by its conduct is required to anticipate the ordinary behavior
of children and to use care commensurate with any danger reasonably
to be anticipated under the circumstances. AMI 604.

Acting as a reasonably careful company designing, manufacturing, publishing, and

supplying video games to the world market would not act in violation of or act contrary

to statutory laws, rules, or regulations. See AMI 601 (A violation of a statute, ordinance,

or regulation, although not necessary negligence, is evidence of negligence); Shannon v.

Wilson, 329 Ark. 143, 160, 947 S.W.2d 349, 357-358 (1997) (Arkansas does not recognize

negligence per se, but violation of a statute, regulation or law is evidence of negligence).

Again, the Platform Defendants owed these duties to G.D. and the Dunns. See Am.

Compl. ¶¶ 482-483 (duty to design safe products); ¶¶ 501, 544 (duty to warn); ¶ 423 (duty

to disclose); ¶¶ 517, 544 (duty to instruct); ¶ 530 (duty of ordinary care); ¶¶ 542, 543, 545

(laws a reasonable company in Google, Nintendo, and Microsoft’s shoes would not

violate). Nevertheless, the Platform Defendants argue for dismissal because “[a] party

providing access to third-party speech has no legal duty to protect or warn against

-58-
Case 3:23-cv-00224-JM Document 121 Filed 03/29/24 Page 59 of 64

potential harms associated with such speech,” Platform Defs’ Brf. p. 34. This argument

fails for two reasons. One, this case is not about “speech” or the Platform Defendants

providing a space for free expression. Two, Arkansas law does recognize a duty to

protect or warn others from wrongs committee by third parties. See AMI 1005. As

vendors of defective and dangerous video games—a fact Google, Nintendo, and

Microsoft knew (or had reason to know), see Am. Compl. ¶¶ 59, 63, 65, 67-70, 397, 407,

668-670,--the Platform Defendants had a duty to give a reasonable and adequate warning

of the danger posed by the video games supplied, sold, and advertised on their video

game platforms. See AMI 1003.

Accordingly, Google, Nintendo, and Microsoft’s argument that they have no valid

legal duty fails and Plaintiffs’ negligence-based claims cannot be dismissed.

D. GOOGLE, NINTENDO, AND MICROSOFT’S ACTIONS AND MISCONDUCT ARE A

PROXIMATE CAUSE OF G.D.’S INJURIES AND PLAINTIFFS’ DAMAGES

Proximate cause is defined as that which in a natural and continuous


sequence, unbroken by any efficient intervening cause, produces the injury
without which the result would not have occurred. Of course, proximate
cause may be proved by either circumstantial or direct evidence. It is,
however, necessary that there be evidence that would tend to eliminate
other causes that may fairly arise from the evidence and that the jury not be
left to speculation and conjecture in deciding between two equally probably
possibilities. It is enough that the plaintiff introduce evidence from which
reasonable persons might conclude that it is more probably than not that
the event was caused by the defendant.

Miaoulis v. Toyota Motor N. Am., Inc., 2021 Ark. App. 19, at 5-6. A

plaintiff need not negate entirely the possibility that the defendant’s
conduct was not a cause, and it is enough that he introduces evidence from
which reasonable men may conclude that it is more probable that the event
was caused by the defendant than it was not. … If as a matter of ordinary

-59-
Case 3:23-cv-00224-JM Document 121 Filed 03/29/24 Page 60 of 64

experience a particular act or omission might be expected, under the


circumstances, to produce a particular result, and that result in fact has
followed, the conclusion may be permissible that the causal relation exists.

Fidelity-Phenix Insurance Co. v. Lynch, 248 Ark. 923, 928, 455 S.W.2d 79, 82-83 (1970).

Moreover, [w]hen the negligent acts of the parties are concurrent, there is no intervening

cause which bars recovery against the original actor.” W.M. Bashlin Co. v. Smith, 277 Ark.

406, 419, 643 S.W.2d 526, 532 (1982). The defendant bears the burden of proving that an

intervening cause exists. Villines v. North Arkansas Regional Medical Center, 2011 Ark. App.

506, *8, 385 S.W.3d 360, 366 (Ark. App. 2011).

Plaintiffs have sufficiently alleged Google, Nintendo, and Microsoft’s video game

products—Nintendo’s Switch and eShop; Microsoft’s Xbox Series X, Xbox Store, Xbox

Game Pass Ultimate, and Xbox Cloud Gaming; and Google’s Google Play—and the

Platform Defendants’ conduct in designing, manufacturing, supplying, and selling those

products, are a proximate cause of G.D.’s injuries and Plaintiffs’ damages. The Platform

Defendants assertion of alleged deficiencies in premised in their version of Plaintiffs’

legal theory—that this case is about content—rather than Plaintiff’s theory—that this case

is about Defendants’ conduct. See, generally, SOF, supra; Arg., supra. But Plaintiffs are

the master of their complaint, Winfrey v. City of Forrest City, 882 F.3d 757, 758 (8th Cir.

2018), and proximate cause based on Google, Nintendo, and Microsoft’s conduct has been

sufficiently pled.

Further, questions of proximate causation are more often than not a question of

fact, to be determined by viewing attendant circumstances, to be decided by a jury. See

White River Rural Water Dist. v. Moon, 310 Ark. 624, 627, 839 S.W.2d 211, 212 (1992); Hill

-60-
Case 3:23-cv-00224-JM Document 121 Filed 03/29/24 Page 61 of 64

Const. Co. v. Bragg, 291 Ark. 382, 385, 725 S.W.2d 538, 540 (1987). Thus, when the challenge

to a plaintiff’s ability to prove proximate cause is made in a motion to dismiss—and the

plaintiff has made allegations to support causation—dismissal is not appropriate. See

Twombly, 550 U.S. at 583. Such is the case here. Any disputes about causation are better

left to be determined after discovery, and not at the pleading stage—particularly when

sufficient facts have been pled to state causation.

Regardless, Plaintiffs’ have sufficiently pled proximate causation based on Google,

Nintendo, and Microsoft’s conduct. For instance, Plaintiffs have pled:

• Nintendo is the designer, developer, manufacturer, publisher, supplier,


and vendor of the Nintendo Switch game console and Nintendo eShop,
and is a vendor of first-party and third-party video games, id. ¶¶ 62-63,
387-394;

• Microsoft is the designer, developer, manufacturer, publisher, supplier,


and vendor of the Xbox Series X game console, Xbox Store, Xbox Game
Pass Ultimate, and Xbox Cloud Gaming, and is a vendor of first-party
and third-party video games, id. ¶¶ 58-60, 364-365, 368-374;

• Google is the designer, manufacturer, developer, publisher, and


supplier of Google Play, and is a vendor of first-party and third-party
video games, id. ¶¶ 65, 399, 405;

• G.D. used the Platform Defendants video game products, id. ¶¶ 27-30,
409-411;

• Video game addiction and its harmful consequences are only expanding
due to the advent of online gaming, cloud gaming, and streaming of
games on any device at any time—giving minors unfettered access to
“free” games that target those consumers to purchase products within
the game to keep playing or for other game perks, id. ¶ 4;

• Google, Nintendo, and Microsoft designed, manufactured, marketed,


and sold video game products, including those used by G.D., with
microtransactions, cloud gaming, and other patented technologies to
cause the addiction experienced by G.D. and other users, and does not

-61-
Case 3:23-cv-00224-JM Document 121 Filed 03/29/24 Page 62 of 64

give any warning of the dangers posed by their video game products or
the video games they supply and sell on their online platforms, id. ¶¶ 7,
100-103, 108-113, 120-123, 176, 181-189, 386, 397-398, 407, 434(d)-(g), 437
(d)-(g); and

• The defective design of Google, Nintendo, and Microsoft’s video game


products, and their failure to warn users like Plaintiffs about the
unreasonably dangerous condition of their products when used as
intended, was a proximate cause of G.D.’s injuries and Plaintiffs’
damages, id. ¶¶ 440-441, 445-451, 460-464, 467-468.

This is sufficient to satisfy state proximate cause against Google, Nintendo, and

Microsoft. Dismissal on this basis would be improper.

E. PLAINTIFFS HAVE PLED THEIR FRAUD-BASED CLAIMS AGAINST GOOGLE, NINTENDO,


AND MICROSOFT WITH PARTICULARITY.

When pleading fraud-based claims, a plaintiff must plead the requisite elements

“with particularity.” FED. R. CIV. P. 9(b). This means that “in alleging fraud or mistake, a

party must state with particularity, the circumstances constituting fraud or mistake.

Malice, intent, knowledge, and other conditions of a person’s mind may be alleged

generally.” Id. Courts generally read this rule to require identification of the “who, what,

where, when, and how” of the alleged fraud. Lauderdale v. Organon USA, Inc., 2022 U.S.

Dist. LEXIS 157591, *38 (W.D. Ark. Aug. 26, 2022). However,

no single concern controls whether a pleading meets the requirements of


Rule 9(b), but, rather, the sufficiency of the pleading must largely depend
upon the nature of the case, the complexity or simplicity of the transaction
or occurrence, the relationship of the parties and the determination of how
much circumstantial detail is necessary to give notice to the adverse party
and enable him to prepare a responsive pleading.

Courts must be sensitive to the fact that application of Rule 9(b) prior to
discovery may permit sophisticated defrauders to successfully conceal the
details of their fraud. Particularly in cases of corporate fraud, plaintiffs

-62-
Case 3:23-cv-00224-JM Document 121 Filed 03/29/24 Page 63 of 64

cannot be expected to have personal knowledge of the details of internal


affairs.

Canaan Wildlife Pres., Inc. v. Chesapeake Energy Corp., Case No. 13-2064, 2013 U.S. Dist.

LEXIS 185527, *11 (W.D. Ark. Oct. 1, 2013) (cleaned up) (quotations and citations

omitted). Plaintiffs’ fraud-based claims against Google, Nintendo, and Microsoft have

met this standard. See Am. Compl. ¶¶ 59, 63, 65, 69, 367, 575-655.

Nevertheless, the Platform Defendants seek dismissal of Plaintiff’s deceit by

affirmative representation claim due to an alleged failure “to identify any actual allegedly

misleading statement from Google and Nintendo,” Platform Defs’ Brf. pp. 38. They also

argue that, with respect to Microsoft, Plaintiffs only identified one actual statement by

Microsoft—that its Xbox Store is “safer for the whole family,” which the Dunns and G.D.

did not rely on according to the Platform Defendants. Platform Defs’ Brf. pp. 38-39. The

factual allegations clearly contradict the Platform Defendants’ position.

Google, Nintendo, and Microsoft all represented that their video game products

are safe and can be used by minors—when they are not. Am. Compl. ¶¶ 367, 595, 595(e)-

(g), 597 G.D. and the Dunns relied on these representations This caused harm to G.D. Id.

¶¶ 605. Dismissal of Plaintiff’s deceit/fraudulent misrepresentation claim is, therefore,

not warranted. 23

23Google, Nintendo, and Microsoft do not make any specific arguments challenging Plaintiffs’ causes of
action for fraudulent omission/nondisclosure, fraudulent concealment, and fraudulent inducement and,
therefore, those claims should not be dismissed as they were stated with particularity as required by Rule
9(b), Bell, and Twombly.

-63-
Case 3:23-cv-00224-JM Document 121 Filed 03/29/24 Page 64 of 64

CONCLUSION

For the reasons stated herein, the Motion to Dismiss filed by Google, Nintendo,

and Microsoft should be denied.

Respectfully submitted, this 29th day of March, 2024,

Plaintiffs Casey Dunn, individually and on behalf of


G.D., a minor, and Thomas Dunn

By: Breean Walas


BULLOCK WARD MASON LLC
Breean “BW” Walas (AR2006077)
Tina Bullock (admitted pro hac vice)
Danielle Ward Mason (admitted pro hac vice)
3350 Riverwood Pkwy., Suite 1900
Atlanta, Georgia 30339
(833) 296-5291
bwalas@bwmlaw.com
tina@bwmlaw.com
danielle@bwmlaw.com

-64-

You might also like