Valve Fighting Arbitration Cases

Video Game Company Flooded by User Claims Slams Law Firm, Funder on Bloomberg Law (may require registration or subscription) reports that Valve has been flooded by user arbitration cases generated through a single law-firm, Bucher Law. This may help explain the recent removal of the arbitration clause in the Steam Subscriber Agreement. The paywalled article points to a petition to the court from Valve requesting the court to enjoin Bucher Law from bringing further arbitration cases, saying the firm made Steam users "merely pawns" in an effort to "weaponize" the arbitration system. Here are details from Valve's filing:
The 624 Respondents are users of Valve’s video game platform, Steam. Valve is forced to bring this petition by the actions of Bucher Law PLLC (“Bucher Law”), a small law firm founded by William Ward Bucher IV.1 Looking to build his business, Mr. Bucher engaged in a widespread marketing campaign to convince Steam users to bring antitrust claims against Valve related to Steam. As Mr. Bucher told an investor he was recruiting to fund his scheme, his strategy was to “weaponize[]” an arbitration provision in the user agreement between Valve and Steam users to leverage a settlement from Valve. (Fuchs Decl., Ex. 1 at 3.)2 Mr. Bucher claimed that bringing thousands of arbitrations on behalf of Steam users would force Valve into a settlement without ever reaching the merits of any claims because “[a]ggregating claims makes [Valve’s] entrance fee to just defend [arbitrations] prohibitively expensive.” (Id.)

Steam users were merely pawns in this scheme; Mr. Bucher promised huge returns for a litigation funder willing to front the costs of convincing users to bring claims against Valve, reducing each Steam user to an “acquisition” cost. (Ex. 1 at 5.) Mr. Bucher estimated a “spend of $3.75 million to recruit 75,000 clients at $50 an acquisition” and a “1874% ROI on $6.5 million investment.” (Id. at 9.) The plan was simple: Convince tens of thousands of Steam users to bring claims against Valve, then use their numbers to extort a windfall settlement by threatening Valve with thousands of arbitrations that would cause Valve to incur substantial arbitration fees. Some Steam users noted on public posts that Mr. Bucher was engaged in a “scam.” Others appear to have been misled about what they had signed up for, believing it was a class action or class action settlement that didn’t exist. And some Steam users who were induced to sign up after receiving repeated harassing video content later tried to rescind their participation.
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17.
 
Re: Valve Fighting Arbitration Cases
Oct 23, 2024, 15:06
17.
Re: Valve Fighting Arbitration Cases Oct 23, 2024, 15:06
Oct 23, 2024, 15:06
 
Kxmode wrote on Oct 22, 2024, 17:10:
Overon wrote on Oct 22, 2024, 15:23:
Kxmode wrote on Oct 22, 2024, 13:24:
"Have a problem with Valve? Give the law office of Bucher, Scamwell & Claimmore a call. We're here... to profit from you!" Smash
Isn't this how every lawyer works?
That was the point of my joke. It's another joke law firm (e.g., the law offices of Dewey, Cheatem & Howe and Bicker, Back & Forthe).
Well I feel silly I thought you were being serious making a bad point about lawyers.

This comment was edited on Oct 23, 2024, 20:10.
16.
 
Re: Valve Fighting Arbitration Cases
Oct 23, 2024, 10:33
Brym
 
16.
Re: Valve Fighting Arbitration Cases Oct 23, 2024, 10:33
Oct 23, 2024, 10:33
 Brym
 
FAFO. You put the arbitration clause in your agreement, you suffer the consequences.
15.
 
Re: Valve Fighting Arbitration Cases
Oct 22, 2024, 17:30
15.
Re: Valve Fighting Arbitration Cases Oct 22, 2024, 17:30
Oct 22, 2024, 17:30
 
Arbitration is yet another example of laws being made to benefit a small, entitled group. In this case it's wealthy companies. We have many, many laws in the US that are needless complex all in the name of helping/protecting those who already have too much anyways. Of course the reality is due to the issues of our legal system, it was created as a way to streamline things to avoid the courts being bogged down but really better pro-consumer legislation should be in place to make the whole thing irrelevant in the first place.
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14.
 
Re: Valve Fighting Arbitration Cases
Oct 22, 2024, 17:10
14.
Re: Valve Fighting Arbitration Cases Oct 22, 2024, 17:10
Oct 22, 2024, 17:10
 
Overon wrote on Oct 22, 2024, 15:23:
Kxmode wrote on Oct 22, 2024, 13:24:
"Have a problem with Valve? Give the law office of Bucher, Scamwell & Claimmore a call. We're here... to profit from you!" Smash
Isn't this how every lawyer works?
That was the point of my joke. It's another joke law firm (e.g., the law offices of Dewey, Cheatem & Howe and Bicker, Back & Forthe).
"Listen, Peter... with great horsepower comes... the sickest drifts..." - source
Avatar 18786
13.
 
Re: Valve Fighting Arbitration Cases
Oct 22, 2024, 16:34
13.
Re: Valve Fighting Arbitration Cases Oct 22, 2024, 16:34
Oct 22, 2024, 16:34
 
jdreyer wrote on Oct 22, 2024, 13:13:
Corporations force users into arbitration because its cheaper for them and they come out on top more often. So it's delicious irony that the system has been turned against them. I like the service Valve provides, but make no mistake they are a monopoly and abuse their position in the market. They are literally the most profitable company per employee in the world.

Forced arbitration is seen frequently as a poor option for otherwise plaintiffs in a lawsuit because the big corp with deep pockets wins far more often than they lose, although it's hard to get exact numbers because usually there's a gag agreement in place too.

I wanna say like 10 years back they used the arbitration en masse tactic on a couple companies to really hose the companies. I think they might have been tech companies? Might have been insurance I'd have to look.

Anyway, the idea isn't so much "lots of arbitration" as the arbitration agreement stipulates that your dispute will be heard in a certain time frame, usually like 60-90 days IIRC. There's only so many accredited arbitrators out there, and if you have 10,000 cases to hear, you're going to be paying a premium to fly in and employ so many arbitrators. This compounds until it's more expensive to go into arbitration than it is to litigate.

For like 5 years a lot of big companies yanked forced arbitration from their agreements because this was getting trendy. Then they quietly added it back in.

As for Valve, if there's a legitimate case to be made here, then they've fucked themselves over, this is part of the risk that you take when you get people to take things out of a court of law where you have legal protections for everyone.
12.
 
Re: Valve Fighting Arbitration Cases
Oct 22, 2024, 15:49
12.
Re: Valve Fighting Arbitration Cases Oct 22, 2024, 15:49
Oct 22, 2024, 15:49
 
Cutter wrote on Oct 22, 2024, 14:50:
I don't know if being a vexatious litigant applies to arbitration or not. You'd think there was some mechanism in place to prevent this sort of nonsense. If not, there soon will be. Fucking ambulance chasers, man. This is why we can't have nice things.

Arbitration is basically taking it outside of the system. I don't think there will be a mechanism because that's the risk you take by forcing arbitration. They want to avoid small claims court and class action lawsuits, so this is what they get
11.
 
Re: Valve Fighting Arbitration Cases
Oct 22, 2024, 15:27
11.
Re: Valve Fighting Arbitration Cases Oct 22, 2024, 15:27
Oct 22, 2024, 15:27
 
WaltSee wrote on Oct 22, 2024, 13:20:
Lie down with lawyers, get up with fleas. The old adage about starving lawyers is true, so many of them resort to crap like this to survive and profit. Sounds like this law firm is guilty of fraud. Suing for settlements in which the sued company admits no wrong is one of the popular tactics employed by shysters today. "Valve has plenty of money, so let's see how much of it we can steal," is unfortunately the way far too many lawyers work today. Bottom line is that costs are pushed out to consumers and the lawyers unjustly enrich themselves. It's like a back door tax on consumers. Don't know about you, but I have no interest in subsidizing ambulance chasers...!
Everyone hates lawyers, until they need one. Then a lawyer battling in your interest is okay. Or companies can simply stop acting illegally and then they won't get sued. Or they can choose not to pass costs to the customer, and instead cut their profit instead. That's always an option.
10.
 
Re: Valve Fighting Arbitration Cases
Oct 22, 2024, 15:23
10.
Re: Valve Fighting Arbitration Cases Oct 22, 2024, 15:23
Oct 22, 2024, 15:23
 
Kxmode wrote on Oct 22, 2024, 13:24:
"Have a problem with Valve? Give the law office of Bucher, Scamwell & Claimmore a call. We're here... to profit from you!" Smash
Isn't this how every lawyer works? Or more generally Isn't this how capitalism works? Seems to me your problems is with capitalism not with this law firm.
9.
 
Re: Valve Fighting Arbitration Cases
Oct 22, 2024, 15:11
9.
Re: Valve Fighting Arbitration Cases Oct 22, 2024, 15:11
Oct 22, 2024, 15:11
 
Oh boohoo first too much litigation was costing Valve money so they put in an arbitration clause/no class actions allowed, then the arbitration clause was costing them too much money so they removed the arbitration clause. Give me a break. They are blaming lawyers and a law firm but those lawyers and law firm represent actual people. What do you do when Valve told you that you can't have a class action, you are forced into arbitration, then you say, okay there are hundreds or thousands of plaintiffs, class actions aren't allowed. If class actions aren't allowed you resolve each case individually. Maybe Valve shouldn't have screwed over so many litigants?

I like Valve, they are one of the better game developers, but I'm not going to defend them like an irrational fanboy. They are a monopolist. If I'm a plaintiff why would I care about the motivations of my lawyer?. Why would I care if what was being alleged by Valve was true? I just want to get paid for Valve screwing me over.

This comment was edited on Oct 22, 2024, 15:22.
8.
 
Re: Valve Fighting Arbitration Cases
Oct 22, 2024, 14:50
8.
Re: Valve Fighting Arbitration Cases Oct 22, 2024, 14:50
Oct 22, 2024, 14:50
 
LurkerLito wrote on Oct 22, 2024, 13:54:
I am of two minds of this whole situation. On the one hand it's definitely a scam by a law firm and really it's like one of the things I hate about them, but at the same time, there is no other way to have gotten that arbitration clause to disappear from the ToS. I have to say the arbitration clause on ALL EULA and ToS to me should be unconstitutional. I do agree that if you were to do that on a regular contract where both parties have representation then a binding arbitration clause is fine to put into a contract as signatures of both parties would be required for the contract to be enforceable, but for a click through license where most people don't read it or if they do read it they don't understand the actual consequences of agreeing, that should be unenforceable. IMO you should not be able to give away any of your constitutionally guaranteed rights without an actual signature from both parties in the presence of an actual judge.

There has to be a balance to both parties in regard to fairness in a contract or it is unenforceable. There's no shortage of badly written contracts that get tossed all the time. Most contract law disputes are proverbial hair splitting over a certain word/phrase/clause. This is why you have specialty lawyers. Contract law is a world all of its own. I don't know if being a vexatious litigant applies to arbitration or not. You'd think there was some mechanism in place to prevent this sort of nonsense. If not, there soon will be. Fucking ambulance chasers, man. This is why we can't have nice things.

“With the first link, the chain is forged. The first speech censured, the first thought forbidden, the first freedom denied, chains us all irrevocably." - Aaron Sati
7.
 
Re: Valve Fighting Arbitration Cases
Oct 22, 2024, 14:36
7.
Re: Valve Fighting Arbitration Cases Oct 22, 2024, 14:36
Oct 22, 2024, 14:36
 
Jivaro wrote on Oct 22, 2024, 14:00:
I don't see the consumer/employee motivation to work through arbitration with corporations and companies. Is there one? I realize arbitration is something you agree to usually as part of a purchase or hiring agreement...I am asking in terms of society...why is this a thing?

The idea was, AFAIK, to prevent a situation where an ongoing lawsuit could potentially deadlock a company's production line or status (this tells you how old this was) due to ongoing investigation, which would mean you could bankrupt a company by chain-sueing them even if the claims never worked out to much.

But of course, nowadays it's purely a negative thing for the customer as the companies can easily shed all legal responsibility for absolutely marginal fees (to them).
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6.
 
Re: Valve Fighting Arbitration Cases
Oct 22, 2024, 14:00
Jivaro
 
6.
Re: Valve Fighting Arbitration Cases Oct 22, 2024, 14:00
Oct 22, 2024, 14:00
 Jivaro
 
I don't see the consumer/employee motivation to work through arbitration with corporations and companies. Is there one? I realize arbitration is something you agree to usually as part of a purchase or hiring agreement...I am asking in terms of society...why is this a thing?


Avatar 55841
5.
 
Re: Valve Fighting Arbitration Cases
Oct 22, 2024, 13:54
5.
Re: Valve Fighting Arbitration Cases Oct 22, 2024, 13:54
Oct 22, 2024, 13:54
 
I am of two minds of this whole situation. On the one hand it's definitely a scam by a law firm and really it's like one of the things I hate about them, but at the same time, there is no other way to have gotten that arbitration clause to disappear from the ToS. I have to say the arbitration clause on ALL EULA and ToS to me should be unconstitutional. I do agree that if you were to do that on a regular contract where both parties have representation then a binding arbitration clause is fine to put into a contract as signatures of both parties would be required for the contract to be enforceable, but for a click through license where most people don't read it or if they do read it they don't understand the actual consequences of agreeing, that should be unenforceable. IMO you should not be able to give away any of your constitutionally guaranteed rights without an actual signature from both parties in the presence of an actual judge.
Avatar 56985
4.
 
Re: Valve Fighting Arbitration Cases
Oct 22, 2024, 13:24
4.
Re: Valve Fighting Arbitration Cases Oct 22, 2024, 13:24
Oct 22, 2024, 13:24
 
"Have a problem with Valve? Give the law office of Bucher, Scamwell & Claimmore a call. We're here... to profit from you!" Smash
"Listen, Peter... with great horsepower comes... the sickest drifts..." - source
Avatar 18786
3.
 
Re: Valve Fighting Arbitration Cases
Oct 22, 2024, 13:20
3.
Re: Valve Fighting Arbitration Cases Oct 22, 2024, 13:20
Oct 22, 2024, 13:20
 
Lie down with lawyers, get up with fleas. The old adage about starving lawyers is true, so many of them resort to crap like this to survive and profit. Sounds like this law firm is guilty of fraud. Suing for settlements in which the sued company admits no wrong is one of the popular tactics employed by shysters today. "Valve has plenty of money, so let's see how much of it we can steal," is unfortunately the way far too many lawyers work today. Bottom line is that costs are pushed out to consumers and the lawyers unjustly enrich themselves. It's like a back door tax on consumers. Don't know about you, but I have no interest in subsidizing ambulance chasers...!
It is well known that I cannot err--and so, if you should happen across an error in anything I have written you can be absolutely sure that *I* did not write it!...;)
Avatar 16008
2.
 
Re: Valve Fighting Arbitration Cases
Oct 22, 2024, 13:13
2.
Re: Valve Fighting Arbitration Cases Oct 22, 2024, 13:13
Oct 22, 2024, 13:13
 
Corporations force users into arbitration because its cheaper for them and they come out on top more often. So it's delicious irony that the system has been turned against them. I like the service Valve provides, but make no mistake they are a monopoly and abuse their position in the market. They are literally the most profitable company per employee in the world.
If Russia stops fighting, the war ends. If Ukraine stops fighting, Ukraine ends. Slava Ukraini!
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1.
 
Re: Valve Fighting Arbitration Cases
Oct 22, 2024, 12:19
1.
Re: Valve Fighting Arbitration Cases Oct 22, 2024, 12:19
Oct 22, 2024, 12:19
 
So based off the two articles, it looks like this move was done to save Valve money because the arbitrations were costing them more per instance than a law suit. The scum bag lawyers saw all that free, low hanging fruit and decided to go after it en masse. The one clear loser here either way is us, the consumers.
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