Grading firm Wata is facing a lawsuit for allegedly ‘manipulating the retro game market’
A class-action lawsuit has been brought against game grading firm Wata, which plaintiffs accuse of unfair business practices and “manipulating the retro video game market”.
The class action centres around claims made in a pair of reports last year, which alleged that Wata colluded with an auction house to artificially inflate the value of the retro video game market for their own gain, allegations both companies denied to VGC at the time.
It was also alleged last summer that Wata’s own employees had been actively selling their own graded games for high prices, in breach of its own policies regarding fraud and conflict of interest.
The lawsuit was filed on May 10 in the Central District of California by plaintiffs and class members from across the US who paid for video game “encapsulation” and grading services from Wata.
The exact number of class members is unknown, but it’s estimated they could exceed 10,000 individuals, based on Wata’s average submission figures.
The plaintiffs accuse Wata of “engaging in affirmative acts to manipulate the retro video game market, engaging in unfair business practices, engaging in false advertising, making false statements about the turnaround times for grading services and failing to disclose material delays to customers.”
VGC has requested comment from both Wata and Heritage Auctions.
Boxed retro games experienced a surge in sale price during the pandemic, with several notable video game auctions raising record sums in the millions.
Last summer, a pristine condition copy of Super Mario 64 sold for $1.56 million, and weeks later, a copy of Super Mario Bros. sold for $2 million. Just a year earlier, the record price for a video game was ten times less: $156,000 for a sealed copy of Super Mario
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