EA settles labor-dispute lawsuit

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A San Mateo Superior Court judge is expected to soon approve a negotiated settlement between former Electronic Arts employee Jamie Kirshenbaum (and others) and Electronic Arts. The case, Jamie Kirshenbaum vs. Electronic Arts, Inc., was previously filed in court on July 29, 2004.

In a statement released after trading had concluded in New York today, EA alerted investors to the settlement.
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The terms of the settlement will see Electronic Arts pay out $15.6 million, to be distributed to all class members and plaintiffs' attorneys. A portion of that $15.6 million will go directly to the named plaintiffs (Kirshenbaum, Mark West, Eric Kearns, and Gianni Aliotti) as well as into a fund to cover all administrative costs. The case will be dismissed as a result.

EA says any portion of the settlement fund that is not claimed by the class will go to the Jackie Robinson Foundation, nonprofit organization that awards college scholarships to minority students.

Today's settlement brings a notorious chapter in EA's labor relations to a legal close--a chapter first brought to light by the blog of the "EA Spouse", which outlined working conditions within EA. Though they preceded the publicity surrounding the Kirshenbaum complaint, the EA Spouse's posts were covered by many outlets, including the New York Times, the Los Angeles Times, and others that dug deep to uncover alleged inequities.

EA settles labor-dispute lawsuit - News at GameSpot