This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Hagens Berman: EA Loses In Madden Lawsuit Verdict - Jury Rules Statute Of Limitations Has Not Run

SAN FRANCISCO, June 21, 2013 /PRNewswire/ -- A jury in U.S. District Court today ruled in favor of Robin Antonick, the original designer and developer of Electronic Arts' (NASDAQ: EA) best-selling Madden NFL Football games.

The case alleges that EA and Antonick signed a series of publishing and development contracts, culminating in a 1986 agreement that requires EA to pay him royalties on any derivative works related to the original version of EA Madden, including current annual releases, and prohibits EA from using his confidential information.  The lawsuit claims that EA failed to pay millions of dollars in royalties owed to Antonick and to keep his work confidential as required by the contract.

The jury will determine what to award Antonick in allegedly unpaid royalties from more than $200 million in revenues for games released between 1990 and 1996, punitive damages and disgorgement of all profits arising from the $5 billion Madden NFL franchise and related sports videogames, according to court filings.  Damages relating to 1997-2013 games will be tried in a subsequent phase of the trial.

In today's ruling the jury tackled the statute of limitations, specifically whether the deadline for filing a lawsuit had already passed. It found in Antonick's favor, ruling that he did not suspect any wrongdoing by EA before 2005. It also found that a reasonable person would not have known about the claims before 2005.

"This is a major validation of Mr. Antonick's testimony," said Rob Carey, Antonick's attorney. "This was by far EA's strongest defense, and the jury's verdict unanimously supported Mr. Antonick, which also means the jury probably thinks some significant information was concealed."

"Now the case goes to the merits, where we have irrefutable evidence," he continued. "We are confident that we will be able to demonstrate that EA failed to live up to its agreement with Mr. Antonick and lied to him about the use of his protected work product in the games."

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 17,678.23 -40.31 -0.23%
S&P 500 2,056.15 -4.90 -0.24%
NASDAQ 4,863.3620 -13.1570 -0.27%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs