Was the PlayStation class action settlement approved?

No. A federal judge in San Francisco rejected the PlayStation settlement for the second time in January 2026. The judge questioned whether PlayStation Network credits are real compensation or just coupons. The first rejection was in July 2025. There is currently no approved settlement, no claim form, and no payout timeline.

Why was the PlayStation settlement rejected?

The judge rejected the settlement primarily because the payout is in PlayStation Network credits instead of cash. Courts generally disfavor coupon-style settlements because they force consumers to spend more money with the same company they sued. The judge also raised concerns about former lead plaintiffs receiving payments from the settlement fund despite no longer being class members, and about the lack of injunctive relief to stop Sony from continuing to block third-party retailers from selling digital game codes.

When will PlayStation users get money from the settlement?

There is no timeline for payments. The settlement has been rejected twice and must be revised before it can be approved. Attorneys for both sides plan to file a new proposal, possibly in spring 2026, but approval is not guaranteed. The approximately 4.4 million eligible PlayStation users should not expect payments anytime soon.

Is there a claim form for the PlayStation settlement?

No. There is no claim form yet because the settlement has not been approved. A claim form will only become available if and when a judge grants preliminary approval of a revised settlement agreement. We will update our coverage when that happens.

Will the PlayStation settlement pay cash or PSN credits?

This is the central dispute. Sony wants to pay class members in PlayStation Network credits. The judge has now rejected this approach twice, questioning whether credits are real money or just coupons that force you to spend more on PlayStation. Any future settlement proposal that still uses PSN credits will face significant resistance from the court.

Judge Rejects $7.85M PlayStation Class Action Settlement Again — Says Credits as Awards Aren't Good Enough

Q: Who qualifies for the PlayStation settlement?

Approximately 4.4 million PlayStation users who purchased qualifying digital games through the PlayStation Store between April 2019 and December 2023 are considered eligible. However, since the settlement has not been approved, no one can file a claim yet.

Q: What is the PlayStation class action lawsuit about?

The lawsuit alleges that Sony blocked third-party retailers from selling digital PlayStation game download codes, forcing consumers to buy digital games exclusively through the PlayStation Store at higher prices. By eliminating competition from retailers like Amazon, Best Buy, and GameStop for digital game sales, Sony allegedly inflated prices. Sony denies any wrongdoing.

Q: How much is the PlayStation settlement worth?

The proposed settlement is valued at $7.85 million. However, the settlement has been rejected twice and must be revised. Plaintiffs' attorneys have reported spending over 13,700 hours on the case and plan to seek approximately $2.61 million in legal fees, which is roughly 33% of the total settlement.

By Steve Levine

PlayStation Class Action Settlement Rejected Second Time

Published: February 13, 2026

Settlement Status: Rejected — Second Time

Claim Form: None Available — Settlement Not Approved

A federal judge in San Francisco has rejected Sony's proposed $7.85 million PlayStation class action settlement for the second time. U.S. District Judge Araceli Martínez-Olguín held a hearing in late January 2026 and again declined to grant preliminary approval. The bottom line for the roughly 4.4 million PlayStation users who are waiting: there is still no approved deal, no claim form, and no timeline for when you might see any money.

Why the Judge Said No — Again

The core problem is the same one that sank the deal the first time around in July 2025: Sony wants to pay people in PlayStation Network credits instead of actual cash.

Think of it this way. Imagine you sued a restaurant for overcharging you, and instead of giving you your money back, the restaurant said, "Here's a gift card you can only use at our restaurant." That's essentially what's happening here. The judge sees PlayStation Network credits as the legal equivalent of a coupon — you can only spend them with Sony, on the PlayStation Store, buying more PlayStation products. Courts have a long history of being skeptical of coupon settlements because they force the people who were wronged to keep doing business with the company that wronged them.

Sony's lawyers argued that PSN credits actually work well for PlayStation users because these are people who already buy games and content regularly through the PlayStation Store. The judge wasn't convinced.

A New Problem: Former Plaintiffs Getting Paid

The judge also flagged a new issue this time around. Two of the original lead plaintiffs in the case — Agustin Caccuri and Allen Neumark — are no longer members of the class. But the proposed settlement still had them receiving payments from the settlement fund.

The judge was blunt: if you're not a class member, you shouldn't be getting paid from a fund that's supposed to compensate class members. The court ordered the lawyers to address this issue in a separate motion before any settlement can move forward.

No Fix for the Underlying Problem

There's also a bigger picture issue that the judge has pointed to. The original lawsuit alleged that Sony blocked third-party retailers like Amazon, Best Buy, and GameStop from selling digital PlayStation game download codes. By shutting out the competition, Sony allegedly forced customers to buy digital games exclusively through the PlayStation Store — at higher prices than they would have paid if retailers were still in the game.

The proposed settlement does not include any requirement that Sony stop doing this. In other words, even if the settlement were approved, Sony could continue the exact practice that the lawsuit was about. The court has indicated that this absence of injunctive relief (a legal term for "make them stop doing the thing") is a concern.

What Happens Next?

Attorneys for both sides indicated after the hearing that they plan to file another motion addressing the court's concerns. Based on the pattern from the first rejection — where plaintiffs were given 30 days to fix the deficiencies and filed a revised proposal in August 2025 — a new filing could come as early as spring 2026.

The biggest question is whether Sony will finally agree to pay in cash instead of PSN credits. The judge has now rejected the credit-based approach twice. Any future proposal that still relies on PSN credits faces an extremely difficult path to approval.

If the two sides cannot reach a deal that satisfies the court, the case would move forward toward trial. Sony has denied any wrongdoing and previously said it agreed to settle only to avoid the cost and distraction of continued litigation. Plaintiffs' attorneys have reported spending over 13,700 hours on the case and plan to seek approximately $2.61 million in legal fees — roughly 33% of the total settlement fund.

Do I Need to Do Anything Right Now?

No. There is nothing to file and nothing to sign up for. The settlement has not been approved, and no claim form exists. If and when a revised settlement is approved, we will update our PlayStation settlement page with full details on how to file.

If you purchased digital games through the PlayStation Store between April 2019 and December 2023, you are among the approximately 4.4 million users who could be eligible. But you should not expect any payments anytime soon.

View Full PlayStation Settlement Details

How Do I Find Class Action Settlements?

Find all the latest class actions you can qualify for by getting notified of new lawsuits as soon as they are open to claims:

Case Background

The case alleges that Sony eliminated competition in the digital PlayStation game market by blocking retailers from selling download codes, forcing consumers to buy exclusively from the PlayStation Store at inflated prices. The proposed settlement is valued at $7.85 million and would cover approximately 4.4 million PlayStation users who bought qualifying digital games between April 2019 and December 2023. Sony denies all allegations and denies any wrongdoing.

For our full coverage of this case, including the original allegations, class definition, and timeline, see our PlayStation class action settlement page.

About This Article

This article is for informational purposes. No claim form is currently available for the PlayStation settlement. OpenClassActions.com is a consumer news site and is not a law firm or settlement administrator.

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Case Status
Settlement Status	Rejected — Second Time (January 2026)
Claim Form	None — Settlement Not Approved
Proposed Fund	$7,850,000
Proposed Payout	PSN credits (rejected by court)
Category	Antitrust / Digital Marketplace / Gaming
Defendant	Sony Interactive Entertainment (PlayStation)
Eligible Users	~4.4 million PlayStation users who bought digital games (Apr 2019 – Dec 2023)
Court	U.S. District Court, Northern District of California
Judge	Araceli Martínez-Olguín
Key Issue	Court says PSN credits look like coupons — wants cash
First Rejection	July 2025
Second Rejection	January 2026
Next Step	Revised proposal expected spring 2026