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April 26, 2006
EA Settles Class-Action Lawsuit over Overtime

Electronic Arts, a maker of video games, has agreed pay $14.9 million to settle a class-action lawsuit alleging current and former computer programmers in its California studios were entitled to overtime compensation under state law.

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Under the terms of the settlement, EA will make a total payment of $14.9 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 be go to the Ronald McDonald House Charities and to establish scholarships at five selected universities for female and under-represented minority students interested in studying interactive entertainment. The five universities are Carnegie Mellon University, Cornell University, Georgia Tech, Stanford University, and Morehouse/Spelman College.

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

In September, the company agreed to pay $15.6 million to settle a overtime lawsuit by a group of current and former graphic artists.

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