If you are a content creator with a subscription to Streamlabs, you may want to continue reading as you could be entitled to a portion of the $4.4 million settlement payout from the company.
Streamlabs is a subscription based software company that acts as a streaming platform that offers a wide array of functions to streamers and content creators — primarily on social media platforms like Twitch and Facebook — such as “overlays and collecting donations from viewers through third-party payment processors such as PayPal.”
The software company is now facing a class action lawsuit amidst allegations of charging customers for subscriptions without their knowledge or consent.
Details of the Streamlabs class action lawsuit
A class action lawsuit against Streamlabs was submitted under the claims that the streaming platform had enrolled its subscribers in a renewal subscription service without informing them. Class action members consist of streamers and content creators who had enrolled in a Streamlabs Pro automatic renewal subscription.
The impacted plaintiffs in this case have shared that they were “charged $5.99 per month for this subscription service despite only intending to make a one-time payment to add a GIF to their donation.” These users were billed with a monthly fee for the Streamlabs Pro Automatic renewal subscription as a result of adding an effect or GIF to their donations. This occurred for longer than a four year period, starting on March 3, 2018 and ending on May 17, 2022.
Adding a GIF or effect to your donation is meant to be a one-time payment, and yet, the plaintiffs have received a monthly bill amounting to $5.99. This may seem like a small, insignificant amount, but if you add it up over the four-plus year period that the subscribers were charged, it adds up to a hefty amount. And this is a hefty amount that the plaintiffs did not agree to part with.
Let’s talk settlement amounts
The software streaming company has decided to maintain its innocence in this case. Although they are not admitting to any wrongdoing, the company has reached an agreement with plaintiffs to make a settlement payout of $4.4 million to resolve the matter.
As per the terms of the Streamlabs class action settlement, “class members can receive a cash payment based on the number of monthly subscription payments they made during the class period. Class members who made a higher number of payments will receive a larger share of the net settlement fund.”
The exact amount each class member will receive has not yet been decided. Attorney costs and other sundry legal fees will also likely be taken out from the settlement total, and as such, payment estimates cannot be made just yet.
In addition to the cash payouts, under the terms of the settlement, the company will now also make changes to the disclosures on its website so that users in the future can have all the necessary information and fees clearly laid out in front of them when signing up for a Streamlabs Pro automatic renewal subscription. This will be done so as to fulfil the requirements of the California Consumers Legal Remedies Act.
Important dates
January 9, 2025 was the final deadline for exclusion and objection, and the final approval hearing for the settlement took place on January 30, 2025.
If you are an eligible class member, you must ensure your valid claim form is submitted by no later than March 31, 2025 in order to receive your portion of the $4.4 million settlement.
To reiterate, eligible members are classified as “consumers who were enrolled in a Streamlabs Pro automatic renewal subscription after adding a GIF or effect to their donation and who were then billed a monthly fee for the subscription between March 3, 2018, and May 17, 2022,” according to Top Class Actions.
Furthermore, to make a claim, you will need to present a proof of purchase in the form of your Streamlabs username or the email used to create your account on the streaming platform.