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Report: EA Sports, CLC to pay $40 million to compensate athletes

A reported $40 million will be set aside to compensate athletes in a settlement of a class-action suit brought by former UCLA basketball player Ed O'Bannon. (Isaac Brekken, AP)

Lawyers for EA Sports want the Ed O'Bannon lawsuit dismissed. (Isaac Brekken, AP Photo)

EA Sports and Collegiate Licensing Company are set to pay $40 million to settle their roles in a class action lawsuit seeking compensation for student-athletes, reports the New York Times.

An agreement was reached in the case on Thursday, but it still needed to be approved by a federal judge.

There is no word on how many athletes will be compensated, but it is estimated that between 200,000 and 300,000 former college football players' likenesses were used in the EA Sports video game alone.

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Former UCLA basketball player Ed O’Bannon filed the lawsuit more than four years ago saying that former-athletes were not being compensated for having their likeness on those video games. His suit against the NCAA is still ongoing.

Electronic Arts also announced that it would stop producing its highly popular college football game beginning next year.

McCANN: O'Bannon settles with EA and CLC in class action, NCAA still remaining

More from the New York Times:

When asked Friday to confirm the $40 million settlement, Michael Hausfeld, a lawyer for the players, said the figure was accurate, but he added that it was not clear yet how the money would be divided. “We have to come up with a plan of distribution, and that’s what we are working on now,” Hausfeld said.