EA motions to dismiss NCAA lawsuit before it becomes class action
EA asked a judge to dismiss the latest complaint in a lawsuit brought on by college athletes alleging EA, the NCAA and the Collegiate Licensing Company used players' names and likenesses in games without proper compensation. EA motioned to dismiss the plaintiffs' third amended complaint, which added six current NCAA athletes with the goal of certifying it as a class action lawsuit.
EA argued that the plaintiffs' new complaint pleaded "no facts to support their theory that EA participated in an antitrust conspiracy with the NCAA and CLC." This wasn't a new strategy – EA and the CLC previously argued they were following NCAA rules and were therefore not involved in an antitrust conspiracy, and EA repeated this defense in the motion for dismissal.
This was the second lawsuit against EA from the law firm Hagens Berman. The first case alleged EA violated antitrust laws by entering into exclusive deals with the AFL, NFL and NCAA. EA settled in this case in 2012 for $27 million and the loss of its exclusive licensing deal with the NCAA. This month, the NCAA announced it would no longer work with EA, exclusively or otherwise.
Steve Berman of Hagens Berman said he viewed the dead deal between EA and the NCAA as a direct result of the pressure of litigation. The court will rule on the class status of the current lawsuit, and respond to EA's motion to dismiss, by September 5.
