Have you bought a new copy of Madden or NCAA Football since 2005? If so, you stand to make some free money. A couple of dudes from California filed an class action antitrust lawsuit against EA Sports, the company that produces these two video games.Unlike the famous American Needle case, where the plaintiff was a small family-owned company that got squeezed out of the football merchandise industry by the NFL's exclusive licensing agreement with Reebok, these two gentlemen claim that the NFL's exclusive agreement with EA Sports resulted in a higher video game price for consumers. They may or may not win (depending on the outcome of the rule of reason test) but all sports fans should thank American Needle for preserving their opportunity to win. Had American Needle lost its case at the Supreme Court, professional sports leagues would have had free reign to exclusively license anything it wanted to anybody at all. Imagine $50 baseball caps, $125 video games, and $800 Sunday Ticket. Not a pretty sight.
At this point, you're probably thinking, "You said something about free money?" Right. If you bought a new copy of Madden or NCAA Football since January 1, 2005, you are automatically a member of the class action lawsuit. And if you're a class member, it's probably best to do nothing.** The only real advantage of opting out of the class (rather than staying in) is being able to file your own antitrust lawsuit against EA Sports on the same grounds. I don't expect many of you to go that route.
So, assuming you remain in the class by doing nothing, a small army of lawyers will represent you and the literally millions of other plaintiffs around the country. In a few years, the case will probably settle, and the court will probably approve the settlement. How much do you stand to "earn?" Well, suppose it settles for $20 million. The attorneys will get their twenty-five percent cut, or $5 million. That leaves $15 million for roughly 10 million video game owners. You can expect to receive a compensation check for $1.63 in ohhh, I don't know, about four years. Isn't the American legal system just the best?!
**In no way does this constitute legal advice. If you're seeking legal advice on this matter, you should consult an attorney licensed in the jurisdiction in which you reside.
For your convenience, here is a copy of the email that our own Andrew Katz forwarded me last night:
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