After EA Sports and College Licensing Co. settled for $40 million with the defendants in the O'Bannon lawsuit, the NCAA has taken its next step. The lone defendant in the lawsuit is alleging CLC failed to adequately supervise EA Sports, subjecting the NCAA to "potential liability in several lawsuits currently being litigated relating to EA's alleged use of NCAA student athletes' names, images, and likenesses in EA's NCAA-themed video games," according to the suit.
The Nov. 4 suit by the NCAA comes after a $40 million settlement agreement announced in September by EA Sports and CLC, which used to be co-defendants with the NCAA in the O'Bannon case. The Nov. 4 filing alleges that CLC's breached duties included "self-dealing in settlement negotiations without the NCAA's knowledge, authorization or participation." The NCAA seeks to prohibit EA Sports and CLC from completing the settlement, and have EA be held responsible for future liability judgments and legal fees.class action