$27 Million Settlement Announced in EA Madden Price-Fixing Lawsuit

[Steve_OS]

A proposed settlement was filed this evening in the lawsuit filed by consumers against EA regarding its exclusive license agreements with the NFL, NCAA and AFL.

Owen Good, over at Kotaku has been following along and explains it very well, right here.

The full details on the proposed settlement below. You can also download a copy of the proposed settlement, right here.

$27 Million Settlement Announced in EA Madden Price-fixing Lawsuit

SAN FRANCISCO – Attorneys representing purchasers of Electronic Arts, Inc. (NASDAQ: ERTS) (“EA”) football video games have reached a proposed settlement over claims that the gaming giant violated antitrust and consumer protection laws and overcharged consumers for the games.

The case, originally filed June 5, 2008, in the United States District Court for the Northern District of California, alleges that EA violated antitrust and consumer protection laws by establishing exclusive license agreements with the National Football League (NFL), National Collegiate Athletic Association (NCAA), and the Arena Football League (AFL). The agreements gave EA the exclusive right to produce football video games with the teams, players and other assets of the NFL, AFL and NCAA, the lawsuit states.

The proposed settlement, filed with the court on July 19, 2012, would establish a $27 million fund for consumers who purchased Madden NFL, NCAA Football or AFL games published by EA. If the settlement is approved by the court, consumers who purchased a sixth generation title (GameCube, PlayStation 2, and Xbox) may receive up to $6.79 per game. Those who purchased a seventh generation title (Wii, Xbox 360 and PlayStation 3) may be entitled to as much as $1.95 per game under the terms of the proposed settlement.

It also stipulates that EA will not sign an exclusive license arrangement with the AFL for five years and will not renew its current agreement with the NCAA, which expires in 2014, for at least five years.

“After more than four years of hard-fought litigation, we have reached a settlement that we strongly believe is fair to consumers,” said attorney Steve Berman, managing partner of Hagens Berman, the law firm representing consumers. “We look forward to moving this process forward and asking the court to approve this settlement, which we think is in the best interests of the class.”

On April 6, 2011, the court certified a class of consumers in the case, including all persons who purchased Madden NFL, NCAA Football or AFL games published by EA between January 1, 2005, and the present.

The proposed settlement must be approved by the court before it is final.

Consumers can learn more about this case by visiting www.hbsslaw.com/maddennfl. You can also contact Hagens Berman, lead-counsel in the action, by emailing maddenNFL@hbsslaw.com.

[Big FN Deal]

It also stipulates that EA will not sign an exclusive license arrangement with the AFL for five years and will not renew its current agreement with the NCAA, which expires in 2014, for at least five years.


I almost crap my pants in anticipation that the "NFL" would have been included in that sentence. lol

[PVarck31]

So this has nothing to do with NFL exclusive rights I take it?

[Cletus]

woo hoo I will take my 20 bucks!

[tazdevil20]

The one organization that matters the most and that one is left out of the settlement. Why is that? What a crock. Nothing would please me more than to see all of these exclusive licenses for games be gone forever.

[NikeBlitz]

Quote:

It also stipulates that EA will not sign an exclusive license arrangement with the AFL for five years and will not renew its current agreement with the NCAA, which expires in 2014, for at least five years.

What does it mean ? No NCAA FB 15 or no more exclusivity ?

[JerzeyReign]

Quote: Originally Posted by NikeBlitz

What does it mean ? No NCAA FB 15 or no more exclusivity ?

No more exclusive deals.

And I'll still hold out hope that this will dissuade EA from renewing the NFL contract -- hopefully.

[Cre8]

This is a sad day for NFL gaming fans...

[roadman]

Quote: Originally Posted by Big FN Deal

It also stipulates that EA will not sign an exclusive license arrangement with the AFL for five years and will not renew its current agreement with the NCAA, which expires in 2014, for at least five years. I almost crap my pants in anticipation that the "NFL" would have been included in that sentence. lol

I did the same thing, I had to read it over a second time.

How will proof of purchases work?

[roadman]

Quote: Originally Posted by tazdevil20

The one organization that matters the most and that one is left out of the settlement. Why is that? What a crock. Nothing would please me more than to see all of these exclusive licenses for games be gone forever.

Settled out of court, both sides negotiated.