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Yes, a judge rejected Microsoft and Mojang’s attempt to force arbitration in one video-game addiction lawsuit—but the decision is limited to their motion and the evidence in this case. On September 25, 2026, U.S. District Judge Mia Roberts Perez ruled that the minor plaintiff had disaffirmed Microsoft’s Services Agreement and that Microsoft had not shown the child’s parent agreed to it on the child’s behalf. The memorandum was filed September 28. The ruling does not decide whether the games caused harm or whether any defendant is liable.
Why did the judge reject Microsoft and Mojang’s arbitration request?
In Mercado v. Roblox Corp. et al., No. 2:25-cv-05925-MRP, Microsoft and Mojang relied on the arbitration provision in the Microsoft Services Agreement (MSA). The court concluded they had not established a binding agreement to arbitrate with the minor plaintiff, identified in the opinion as S.S.M.
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The minor disaffirmed the agreement
S.S.M. signed a declaration on June 3, 2026, disaffirming the MSA and its arbitration clause. Under Pennsylvania law on minors’ contracts, the court held that disaffirmance effective. The account evidence showed no use after the last recorded access in February 2026, and Microsoft offered no evidence of later use that would undermine the disaffirmance. The opinion states: “As a minor, S.S.M. was entitled to disaffirm the MSA and avoid its enforcement.” (U.S. District Court memorandum, Sept. 25, 2026.)
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The court separately found Microsoft had not established that S.S.M.’s parent and guardian, Dany Mercado, agreed to the MSA on the minor’s behalf. It sustained an objection to a declaration by Microsoft’s counsel identifying accounts because the declaration relied on third-party background reports that were not identified, leaving their reliability and admissibility unclear. Other account records did not adequately connect Mercado to the relevant Microsoft or Xbox accounts.
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That matters because an arbitration clause is enforceable only against a party who agreed to arbitrate. As Judge Perez quoted from Zirpoli v. Midland Funding, LLC: “A court can compel a party to arbitrate only if the party agreed to arbitration.”
What does the lawsuit allege?
The complaint alleges that S.S.M.’s use of Roblox, Minecraft, and Fortnite led to video-game addiction, academic decline, reduced social interaction, and withdrawal symptoms. It includes claims such as strict product liability, negligence, and fraud. Those are allegations recounted in the court’s background—not findings that the child had a diagnosed addiction, that the games caused the alleged effects, or that any company acted unlawfully.
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Does the ruling mean the lawsuit can go to court?
It means Microsoft and Mojang could not compel this plaintiff to arbitrate on the record and contractual arguments presented in this motion. It does not resolve the underlying claims, and it does not decide every defendant’s arbitration rights or motion. The case remains active, so subsequent docket developments may affect what happens next.
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The decision is not a nationwide rule that minors can never be bound by arbitration clauses. The outcome turned on the MSA, Pennsylvania law, the minor’s disaffirmance, and the evidence offered to establish parental assent. Other cases may involve different contract terms, state law, facts, or parties.
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How does the separate Roblox arbitration ruling differ?
Bloomberg Law reported a separate denial of Roblox’s attempt to compel arbitration in the same litigation. That ruling was described as resting on the minor’s rejection of a clause delegating questions of contract formation to an arbitrator. It involved a different motion and asserted contract provision; it should not be treated as the reasoning in Judge Perez’s Microsoft-and-Mojang memorandum. (Bloomberg Law, “Roblox Loses Bid to Send Teen Addiction Claims to Arbitration,” Sept. 29, 2026.)
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What to take away from the decision
- Judge Perez denied Microsoft and Mojang’s motion on September 25, 2026; the memorandum was filed September 28.
- The court held that S.S.M. effectively disaffirmed the MSA and found no evidence of later account use that changed that conclusion.
- Microsoft also failed to establish that the parent had agreed to the MSA for the minor.
- The ruling addresses arbitration procedure, not whether the games caused the alleged injuries or whether the defendants are liable.
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