The NCAA has sued Electronic Arts and the Collegiate Licensing Company over its proposed settlement with student athletes from late September
reported. The $40 million settlement was in regards to the use of student athlete likeness, an ongoing legal dispute that stemmed back to May 2009
. As a result of the string of lawsuits, EA canceled its college football game
that was set to launch in 2014, which started with the NCAA's decision to not renew
its licensing contract with the publisher in July.
Filed in a Georgia state court on November 4, the lawsuit from the NCAA alleges that EA did not agree to compensate the NCAA for losses related to legal claims from student athletes, and that the publisher did not have liability insurance to do so. EA's proposed $40 million settlement would negate the company's contractual obligations to idemnify the NCAA for any liability and attorney fees related to the lawsuits.
We have contacted both EA and the CLC for comment.
A Collegiate Licensing Company representative told Joystiq that "CLC is caught in the middle of a dispute between NCAA and EA which should not involve us. CLC has valued relationships with both the NCAA and EA and while we hope they can soon resolve their dispute, we see no reason for CLC to be involved."
The NCAA has declined to comment on the story.
EA has also declined to comment on the story.