EA Settles Football Game Class-Action Suit for $27 Million

Electronic Arts has reached a $27 million settlement over price-fixing charges for its top football games.

According to the law firm of Hagens Berman, which is representing the plaintiffs, the deal sets up a $27 million fund for those affected by EA's alleged scheme. Consumers stand to receive a refund of $2-7 per game.

The case dates back to 2008, when EA was sued for negotiating exclusive license agreements with the National Football League (NFL), National Collegiate Athletic Association (NCAA), and the Arena Football League (AFL). The deals gave EA the exclusive right to produce football video games with the teams, players and other assets of the NFL, AFL and NCAA, according to the lawsuit.

This violated antitrust and consumer protection laws and resulted in customers being overcharged for the games, the firm said.

The deal also bans EA from signing exclusive license arrangements with the AFL for five years or renewing its current contract, which expires in 2014, for at least five years.

Under the deal, which still requires court approval, those who purchased a sixth-generation game for the GameCube, PlayStation 2, or Xbox could receive up to $6.79 per game, while those who bought seventh-generation titles for the Wii, Xbox 360, or PlayStation 3 can get up to $1.95 per game.

"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. "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."

"We made a business decision to settle this lawsuit and put the matter behind us," EA said in a statement. "We look forward to continuing our partnerships with the NFL and NCAA."

Editor's Note: This story was updated Tuesday with comment from EA.

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