Cost of EA's bad overtime practices? $15.6 million!

by: John -
It seems that big hooplah over the overtime problems that EA has has been settled. A total of $15.6 million will be paid out to cover all claims but the class members, attorney fees, and other costs. Now let's hope EA has learned their lesson and changed their policy as well as take care of their employees better.
EA Settles Class Action on Overtime

REDWOOD CITY, Calif.--(BUSINESS WIRE)--Oct. 5, 2005--Electronic Arts (NASDAQ:ERTS) and counsel representing a class of current and former computer graphic artists in Electronic Arts' California studios today announced a settlement agreement on claims for overtime compensation.

Under the terms of the settlement, the claims of the alleged class will be dismissed, and EA will make a total payment of $15.6 million to cover all claims by the class members, plaintiffs' attorney fees, any incentive payments to the named plaintiffs and all administrative costs of the settlement. Any portion of the settlement fund that is unclaimed by class members will go to the Jackie Robinson Foundation, a national nonprofit organization that awards college scholarships to minority students, with a preference toward students interested in studying interactive entertainment.

Settlement of the case, which is pending in the Superior Court of San Mateo County, California, must be approved by the Court before it can become effective.

Plaintiffs and the class were represented in the litigation by Thomas V. Urmy, Jr. and Todd S. Heyman of the Boston law firm Shapiro Haber & Urmy LLP (http://www.shulaw.com) and Robert C. Schubert and Miranda Kolbe of the San Francisco law firm Schubert & Reed LLP (http://www.schubert-reed.com). EA was represented by Lynne C. Hermle and Jessica R. Perry of Orrick, Herrington & Sutcliffe LLP (http://www.orrick.com).

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