Supreme Court rejects NCAA bid to halt EA Sports settlement
The Supreme Court has rejected the NCAA's attempt to halt a settlement by EA Sports and the Collegiate Licensing Company in a lawsuit challenging the collegiate athletic association's ban on compensating athletes for using their likenesses.
A federal appeals court sided with the plaintiffs in the lawsuit, brought by former Arizona State football standout Sam Keller and other former student-athletes, and both EA Sports and the CLC reached a settlement. The NCAA, however, has not bent in its stance that it will not compensate players, and has sought to stop the settlement reached by its former partners.
The ruling bodes well for another huge case vs. the NCAA, brought by former UCLA basketball standout Ed O'Bannon and other plaintiffs demanding the NCAA find a way to give players a cut of the billions of dollars earned from live broadcasts, memorabilia and video games sales, and other revenue.
U.S. District Judge Claudia Wilken, who is presiding over the case, denied class-action status to the plaintiffs last year. Class-action status could have potentially put the NCAA on the hook for billions of dollars in damages.