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NCAA Sues Electronic Arts and Collegiate Licensing Over Breached Duties

The NCAA is suing Electronic Arts (NASDAQ: EA), claiming that the company breached contractual and fiduciary duties when acting as a partner in the production of popular college-sports video games.

According to The Wall Street Journal, the NCAA accused Collegiate Licensing Co. (CLC) of failing to "adequately supervise" Electronic Arts in a November 4 Court filing. The filing noted that this inadequate supervision, "subject[s] the NCAA to potential liability in several lawsuits currently being litigated relating to EA's alleged use of NCAA student athletes' names, images, and likenesses in EA's NCAA-themed video games."

In addition, the NCAA specified breached duties including, "self-dealing in settlement negotiations without the NCAA's knowledge, authorization or participation."

Andrew Giangola, a spokesman for the CLC, said the company is "caught in the middle of a dispute between NCAA and EA which should not involve us."

Electronic Arts closed at $23.00 and shares are currently trading +1.91 percent.

Posted-In: News Legal Best of Benzinga


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