SAN FRANCISCO – A California federal judge granted final approval to a $27 million settlement in a lawsuit filed by consumers against Electronic Arts, Inc. (NASDAQ: EA) (“EA”) alleging that the gaming giant violated antitrust and consumer protection laws, resulting in artificially inflated prices for EA-published Football video games.

The case, originally filed June 5, 2008, in the United States District Court for the Northern District of California, alleged 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 settlement, filed with the court on July 19, 2012, establishes a $27 million fund for consumers who bought a new copy of an Electronic Arts’ Madden NFL, NCAA Football, or Arena Football videogame for Xbox, Xbox 360, PlayStation 2, PlayStation 3, GameCube, PC, or Wii, with a release date of January 1, 2005 to June 21, 2012.

Individuals who purchased Madden NFL, NCAA Football, or Arena Football videogames for the Xbox, PlayStation 2, PC, or GameCube platforms (“Sixth Generation Purchasers”) and submitted claims may receive $20.37 per new game purchased, up to a total of eight units ($162.96). Valid claims for the purchase of those same games for the Xbox 360, PlayStation 3, or Wii platforms (“Seventh Generation Purchasers”) will be valued at $5.85 per new game purchased, up to a total of eight units ($46.80).

The deadline to file a claim form in this case passed in May. Consumers can also learn more about this case by visiting www.hbsslaw.com/cases/ea-madden-nfl.

“We’re pleased to hear that Judge Wilken approved the settlement. It’s a fair amount for consumers, especially given the real risks inherent in continuing to litigate the case,” said Steve Berman, managing partner of Hagens Berman, the law firm representing consumers as lead counsel. “After four long years of litigation, we can finally close this case and give consumers what they are owed.” 

In addition to paying the settlement, EA Madden is barred from entering into contracts with the Arena Football League for five years or renewing its collegiate football trademark license with the Collegiate Licensing Co. on an exclusive basis for five years after the current license for expires in 2014. EA also agreed not to seek new exclusive trademark licenses regarding football video games with the NCAA, the CLC, or any NCAA member institution covered by the current license for five years after its 2014 expiration.

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About Hagens Berman
Hagens Berman Sobol Shapiro LLP is a consumer-rights class-action law firm with offices in nine cities. The firm has been named to the National Law Journal’s Plaintiffs’ Hot List seven times. More about the law firm and its successes can be found at www.hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.

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