In Re Webkinz Antitrust Litigation

ORDER GRANTING MOTION TO DISMISS

Now before the Court is the motion to dismiss counts one, two, part of five, and seven of the Plaintiffs’ consolidated amended class action complaint filed by Defendants Ganz, Inc. and Ganz U.S.A., LLC (“Ganz”). Ganz brings this motion to dismiss: (1) the first count for violation of the antitrust laws; (2) the second count under California’s Unfair Competition Law; (3) the fifth count under Illinois’ Consumer Fraud Act or a claim for damages under the Deceptive Practices Act; and (4) the seventh count under New York’s General Business Law §§ 349 et seq., all for failure to state a claim upon which relief can be granted. Having carefully considered the parties’ arguments and relevant legal authority, the Court hereby GRANTS Ganz’s motions to dismiss with leave to amend.

BACKGROUND

Ganz develops and distributes toys and other products, including Webkinz, a popular toy linked to an interactive web site. Associated with each Webkinz toy is a code that enables the user to unlock a web site, called Webkinz World, that offers online games and other activities, allowing the user to take care of a virtual pet by earning points by playing games, which…