$27M Settlement reached in Madden Class Action Lawsuit

Madden NFL 10

Seattle-based PR firm Firmani + Associates announced late this afternoon that attorneys representing purchasers of Electronic Arts football video games have reached a proposed settlement over claims the gaming giant violated antitrust and consumer protection laws, overcharging consumers for the games.

The case was originally filed on June 5th, 2008, in the US District Court for the Northern District of California, and 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 lawsuit states.

The proposed settlement, filed with the court on July 19th, 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.

The proposed settlement 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," says 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 6th, 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 declared as final, and consumers can learn more about this case by visiting www.hbsslaw.com/maddennfl. Interested parties can contact the law firm Hagens Berman, the lead-counsel in the action, by email at maddenNFL@hbsslaw.com .

A copy of the proposed settlement is available by clicking on this link...