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Electronic Arts reached a settlement in a class action lawsuit that dates back to 2008 for $27 million, and will be unable to renew its exclusive agreement with the NCAA, providing the court upholds the settlement terms.
The original lawsuit claimed that EA violated antitrust laws by entering exclusive license agreements with the NFL, NCAA, and AFL. The $27 million settlement fund proposed by EA would, in part, benefit those that purchased any EA Sports football game from January 2005 to today. Specifically, customers that bought any of the included GameCube, Xbox, and PS2 games may get up to $6.79 per game, and $1.95 per Wii, Xbox 360, and PS3 game.
EA also agreed to stipulations on future license agreements as part of the proposed settlement, as it will not make any exclusive licensing deals with the AFL for five years, and will not renew its current agreement with the NCAA. Additionally, EA won't be able to enter another exclusive licensing agreement with the NCAA for five years. The company's exclusive NFL trademark licensing deal remains untouched in the proposed settlement, which awaits final approval by the court on September 27.
