Thursday, July 11, 2013

EA Football Lawsuit: Why Is Settlement Payments Being Held Up?

EA Sports
A lone EA customer is holding up the $27 million settlement EA Football class action lawsuit due to his objection to attorney fees. (Photo: Twitter/EA Sports)

A customer of EA Sports and one of the thousands involved in the class action lawsuit against EA Sports has filed an objection to a single aspect of the settlement that will pay customers millions.

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Aaron Miller has filed an appeal of the case contesting the attorneys' fees that will be paid from the $27 million settlement that EA Sports agreed to. The attorneys were set to receive $7.29 million from the settlement as well as $2 million for reimbursement of expenses.

In 2008, Geoffrey Pecover sued Electronic Arts using the argument that the EA Sports' exclusive license with the NFL was equivalent to a price-fixing scheme. With getting the exclusive license, EA Sports was forced to raise the prices of their games in order to pay for the deal with the sports leagues. With no competition against EA Sports, they were able to raise prices and fans were forced to purchase their games, due to EA being the only publisher in town who could make NFL-branded football content. Blitz: The League, as well as other football games with completely fictional rosters, can't really muster the enthusiasm associated with playing as a hometown team.

In 2009, the lawsuit became a class action lawsuit and last July, EA Sports settled the lawsuit and established the $27 million fund for the customers who participated in the lawsuit. The number of players who joined the lawsuit was a lot less than expected, so the rewards are kind of a lot of money. Here is how the payout breaks down:

$20.37 for PS2/Xbox/Gamecube up to a total of 8 copies with $162.96 the maximum.

$5.85 for PS3/Xbox 360/Wii up to a total of 8 copies with $46.80 the maximum.

Pecover and Andrew Owens, who seconded Pecover's original lawsuit, were also entitled to $5,000 each as a "participation award." EA Sports also agreed to not hold exclusive rights with the NCAA or Arena Football for a period of five years from the settlement date.

According to Kotaku, Miller's lawsuit?is being appealed in the U.S. Court of Appeals for the Ninth District. While the appeal is being considered, no payouts can be made to customers or attorneys from the settlement pool. Payouts to customers were expected during the summer months, but the appeal will most likely push any potential payouts until next year at the earliest.

October 7th has been set as the deadline for Miller's brief to be given to the court.

Hopefully, you are not expecting that check anytime soon.?

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Source: http://www.idigitaltimes.com/articles/18744/20130710/ea-sports-football-lawsuit-settlement-payments-delay.htm

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