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EA Settles For $27 Million in Class Action Lawsuit

Andrew Lee Jul 26, 2012 2

 

The class action lawsuit involving EA has reached a conclusion and a settlement. On June 5th, 2008, a class action lawsuit was filed against Electronic Arts because it was alleged that EA had violated antitrust and consumer protection laws when it had come into an exclusive agreement with the NFL, NCAA, and the AFL.  This agreement consisted with the sole right to produce video games featuring teams, players, and other various assets from the NFL, NCAA, and AFL.  The lawsuit alleges that consumers had also been overcharged for these games.

The settlement has established a $27 million dollar fund for consumers who have purchased Madden NFL, NCAA Football, or AFL games that had been published by EA for sixth and seven generation titles.  Examples of those who purchased sixth generation titles for consoles such as the GameCube, Playstation 2, and Xbox could receive up to $6.79 per game.  For those who purchased seventh generation titles for like the Wii, Xbox 360, and PS3 could receive up to $1.95 per game.  However, this only applies to consumers who had purchased these titles from January 1st, 2005 to the present.

In addition to the trust fund to compensate consumers, the settlement also puts further restrictions on EA.  This will requires that EA will not sign with the AFL for five years.  In addition, EA will not be able to renew its current agreement with the NCAA, which expires in 2014, for also at least five years.  While the settlement is awaiting approval by the court system, it seems that both sides are confident that a fair settlement has been reached.  Consumers who are affected by this class action settlement can find more information at http://www.hbsslaw.com/maddennfl or by contacting Hagens Berman at maddenNFL@hbsslaw.com.

Via »Examiner