The civil lawsuit Rec Room filed against a Canadian minor ended in a stipulated consent judgment entered October 6, 2025—not a trial verdict or criminal conviction. The court entered a $50,000 judgment and a three-year injunction restricting the teen’s access to Rec Room and related conduct. The order does not establish that the money was paid.
What Rec Room alleged in its lawsuit
Rec Room filed its complaint in October 2023 in the U.S. District Court for the Western District of Washington, naming the defendant by the initials M.Z. In an April 2024 procedural order, the court described the complaint as identifying M.Z. as a minor believed to be approximately 16 years old. That description reflects what the complaint alleged; it is not a finding about his age.
The complaint listed claims including breach of contract, fraud, copyright infringement, circumvention of technological measures and tortious interference with contractual relations. Rec Room’s detailed claims were allegations at filing, not findings made in the April 2024 order.
In its October 2023 report, GeekWire described Rec Room’s allegations that M.Z. repeatedly violated community standards, evaded bans with alternate accounts and created and sold cheats. Rec Room reportedly alleged at least 61 alternate accounts and cheats that could let avatars pass through walls, have infinite health or carry weapons between games. Those details were allegations attributed to the company, not independently verified facts.
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What the court’s 2025 judgment established
On September 25, 2025, the parties stipulated that judgment should be entered for three years. The court entered the consent judgment on October 6, 2025. Its terms record the parties’ stipulations that M.Z. resided in Canada; had repeatedly been banned and evaded bans by creating new accounts; hacked, cheated and violated Rec Room’s Terms of Service; and downloaded, used, marketed or facilitated the use and creation of cheat software.
The judgment is a stipulated civil disposition, not a contested trial verdict. It also says that complaint claims not addressed in the judgment were withdrawn.
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What the injunction prohibits
The three-year injunction bars a range of conduct involving Rec Room, including:
- Creating or logging into a Rec Room account, or playing Rec Room games.
- Commercial conduct relating to Rec Room, including selling cheats or hacks, or Rec Room content or accounts.
- Visiting or interacting with Rec Room social-media accounts.
- Streaming or posting Rec Room gameplay.
- Downloading or using cheats.
- Threatening or harassing Rec Room, its employees or community members.
The order also requires destruction of source code or documents related to Rec Room cheats. It warns that violations may be subject to the court’s contempt authority. The court stated: “This injunction will constitute a binding court order, and any violations of this order by M.Z. will subject him to the full scope of this Court’s contempt authority.”
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Does the $50,000 judgment mean M.Z. paid?
No payment is established by the judgment itself. The court ordered judgment against M.Z. for $50,000, but the order does not say the amount was paid. The judgment amount should therefore not be described as a confirmed payment.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.How the case reached a stipulated judgment
In April 2024, the court directed Rec Room to address M.Z.’s capacity to be sued and whether a guardian ad litem was required, and stayed other deadlines pending that response. In July 2024, the court appointed Denise Ashbaugh, Jeremy Roller and Jonah Harrison to represent M.Z. The parties later stipulated to judgment, which the court entered in October 2025.
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The court said it would administratively close the matter while retaining jurisdiction to enforce the order. The available materials establish that enforcement authority was retained, but do not establish whether any post-judgment enforcement action occurred.
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