Sony Pictures and Crunchyroll Settle $16 Million Privacy Lawsuit

In a significant development in the world of digital entertainment, Sony Pictures and Crunchyroll have reached a $16 million nationwide video privacy class action lawsuit settlement. This settlement aims to resolve claims that both companies shared subscribers' personal information with third-party companies, including Facebook, Google, Adobe, and others, without obtaining proper consent. 

The Lawsuit and Allegations

The lawsuit alleged that Sony Pictures and Crunchyroll had violated the Video Privacy Protection Act (“VPPA”), a federal law designed to protect the privacy of video rental and streaming service users. The VPPA restricts the disclosure of an individual's video rental and streaming history without their explicit consent. Subscribers alleged that their viewing history and personal information were shared with third-party companies, enabling these companies to track and target users without their knowledge or consent. On the video streaming platform Crunchyroll, viewers may view anime, manga, and series' early Japanese premieres. To see content on its app, website, or video-on-demand service without advertisements, users must subscribe to the website.

The Settlement

As part of the settlement, the $16 million fund will be used to compensate affected subscribers who were included in the class action lawsuit. These individuals will receive a portion of the settlement based on their specific circumstances. Furthermore, Sony Pictures and Crunchyroll have agreed to implement stricter privacy and data protection measures to prevent similar incidents in the future. These measures are aimed at enhancing user data security and privacy.

Consumers who file proper claim forms are expected to get approximately $30 each from the $16 million settlement, according to class counsel. The total settlement amount will also cover fees and rewards for the class representatives, attorneys’ fees, and the costs to administer the fund.