Lawsuit Against Chuck E. Cheese: What's The Deal?

Chuck E. Cheese, the pizza and entertainment chain, has been involved in several lawsuits over the years. The company has faced legal action from customers, employees, and landlords, with claims ranging from illegal gambling to sexual harassment and unsafe equipment. In one notable case, a woman sued Chuck E. Cheese after her hair allegedly got caught in a ticket-counting machine, causing pain and distress. In another instance, a former employee in West Virginia sued the company, alleging that a manager sexually harassed her over several months. Chuck E. Cheese has also faced financial troubles, with its parent company, CEC Entertainment, declaring bankruptcy during the pandemic due to mounting lawsuits from landlords over missed rent payments.

Woman sues over hair caught in ticket machine

Woman sues Chuck E. Cheese's over hair caught in ticket machine

An Oregon woman, Ashreana Scott, is suing Chuck E. Cheese for negligence after her hair got caught in a ticket machine, trapping her for 20 minutes. Scott filed a lawsuit against CEC Entertainment, the company that owns the Chuck E. Cheese franchise, claiming that the company was negligent in the design and layout of its ticket-counting machine, which caused her hair to get caught.

The incident occurred on December 8, 2019, at a Chuck E. Cheese location in Portland, Oregon. Scott was feeding paper tickets into the machine to redeem them for prizes when her hair became entangled. She claims that she was stuck for 20 minutes before an employee finally freed her. As a result of the incident, Scott says she suffered injuries, including "pain, discomfort, distress, and headaches."

Scott's lawyer, Michael Fuller, stated that Chuck E. Cheese failed to use reasonable care in the design and layout of its ticket-counting machine to ensure the safety of its guests. He also claimed that the company failed to properly train its employees on how to promptly handle such situations.

Before filing the lawsuit, Scott demanded that Chuck E. Cheese's insurance company pay her negligence claim, but the insurance company refused to settle. Scott is now seeking $1,000 in damages, as well as a warning sign to be placed next to the machine and a jury trial.

A spokeswoman for CEC Entertainment declined to comment on the active litigation.

Parent company sued for workplace sexual harassment

A former Chuck E. Cheese employee in West Virginia is suing the company's parent organization, CEC Entertainment, after a store manager allegedly sexually harassed her. The worker, who was 17 when the alleged harassment began, claimed that she was first harassed by a coworker, who propositioned her. When she reported this incident to her manager, Ryan Slade, he also began to harass her.

The plaintiff sued under the West Virginia Human Rights Act, seeking remedies under that law and state tort law, as well as punitive damages. The suit does not specify the amount of money the plaintiff is seeking.

The suit claims that CEC Entertainment is liable for the alleged conduct of Slade, as he was acting as the plaintiff's supervisor. The suit also alleges that the company either knew or should have known about Slade's conduct but "failed to take swift and corrective action to prevent further harassment."

According to the complaint, Slade told the plaintiff that the coworker who initially harassed her "is not the only one who wants to sleep with you." The suit further alleges that Slade stared at the plaintiff, asked her to stay late so he could continue looking at her, touched her inappropriately, followed her into a parking lot after a shift, and attempted to manipulate the worker into liking him, among other harassing acts. The plaintiff, Kylie Wright, quit her job as a result of Slade's actions.

Chuck E. Cheese declined to comment on the lawsuit. However, Todd Bailess of Bailess Law Firm, which represents the plaintiff, wrote in a statement: "Our client was a teenager when she was subjected to egregious behavior at Chuck E. Cheese, a place that markets itself as a fun, family-friendly environment. Workplace sexual harassment should not be tolerated in this or any other setting."

Landlord lawsuits lead to bankruptcy

CEC Entertainment, the parent company of Chuck E. Cheese and Peter Piper Pizza, filed for bankruptcy in 2020, citing the pandemic as the main cause. However, the immediate reason for the bankruptcy was to protect locations threatened by mounting lawsuits from landlords. The company faced more than 50 lawsuits from landlords over missed rent payments or attempts to terminate leases.

In a legal filing, CEC stated that it could "not risk losing any additional stores" and believed that filing for Chapter 11 bankruptcy was necessary to stop these actions. The company hoped that by declaring bankruptcy, it could protect its store base and ensure it remained a valuable entity for potential buyers.

The pandemic had already put a strain on CEC Entertainment's finances, as the company lost 90% of its revenue during that period. The company had nearly $1 billion in debt, which put pressure on its restaurants to maintain strong sales. The pandemic also made it difficult for the company to reopen its restaurants and recover its sales.

In addition to the financial strain caused by the pandemic, CEC Entertainment was also dealing with other issues. The company had to negotiate with landlords for rent relief, and some landlords were no longer willing to provide relief or negotiate. This led to lawsuits over missed rent payments.

The combination of the pandemic's impact on the company's finances, the existing debt, and the mounting lawsuits from landlords led to CEC Entertainment's decision to file for bankruptcy protection. The bankruptcy filing allowed the company to keep some of its restaurants open and work towards a potential sale.

Sued for promoting gambling to children

In 2024, Chuck E. Cheese was sued by Denise Keller, a mother of two young daughters, for promoting gambling to children. Keller filed a lawsuit in federal court, asking for a jury trial, damages, and restitution of up to $5 million. She argued that some of Chuck E. Cheese's games feature roulette wheels, similar to those found in casinos, and that these games are based on chance rather than skill. According to Keller and her attorney, Eric Benink, these games expose children to addiction as they repeatedly play to get game tickets, which can be redeemed for prizes.

In response to the lawsuit, CEC Entertainment, the parent company of Chuck E. Cheese, argued that the games are not illegal. They claimed that the California legislature, when passing the relevant statute, was targeting "video slot machines masquerading as legal video games." CEC Entertainment also alleged that Keller should not be entitled to any damages or restitution since she willingly participated in the games and took her children to the restaurant.

California law prohibits gambling except in specific situations, such as Indian casinos. However, it makes an exception for games that are predominantly based on the skill of the player rather than chance. The court will have to determine whether the games in question fall under the definition of "slot machines or devices" prohibited by the California Penal Code and whether Keller is entitled to any damages, even if the games are found to be illegal.

The outcome of this lawsuit will have implications for the restaurant chain and the way it operates its arcade games. It also raises questions about the potential impact of these types of games on children and whether they should be exposed to casino-style gambling devices.

While Chuck E. Cheese's games may appear to be aimed at children, the lawsuit alleges that they create the same highs and lows experienced by adults who gamble, potentially leading to addictive behaviors. The suit seeks to highlight the dangers of exposing children to gambling at a young age and the responsibility of companies to ensure their games are age-appropriate and compliant with legal regulations.

Sued by former employee over sexual assault

In September 2024, a former 17-year-old employee of Chuck E. Cheese in West Virginia sued the company, alleging that she was sexually harassed by her manager and a co-worker. The plaintiff claimed that the manager, Ryan Slade, stared at her, asked her to stay late so he could continue looking at her, touched her inappropriately, followed her into a parking lot after a shift, and attempted to manipulate her into liking him, among other harassing acts. The suit also alleged that the company either knew or should have known about the manager's conduct but failed to take action to prevent further harassment. The plaintiff sued under the West Virginia Human Rights Act, seeking remedies under state law and punitive damages.

In a separate case, a woman referred to as "Jane Doe" sued a Chuck E. Cheese restaurant in Orange County, Florida, after a reported sex attack in 2019 when she was 16 years old and employed by the restaurant. The lawsuit alleges that another employee, Emmanuel Perez Montalvo, groomed her by giving her rides home from work and then forcibly kissed her and sexually assaulted her on multiple occasions. The lawsuit accuses Chuck E. Cheese of negligence and premises liability, stating that the restaurant was aware of Montalvo's inappropriate conduct during his employment.

These cases highlight the issue of sexual harassment and violence in the restaurant industry, with teenaged workers particularly vulnerable to such incidents. According to a survey of Maryland restaurant workers conducted by One Fair Wage, 47% of restaurant workers experienced sexual harassment.

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