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Electronic Arts Settles Overtime Pay Suit

The company will pay about $15 million.

Electronic Arts


has agreed to settle the second of two class-action suits that alleged the company illegitimately avoided paying overtime to some of its employees.

Under the terms of the agreement, which still has to be approved by the California state court hearing the case, EA will pay some of its current and former computer programmers $14.9 million. EA did not say how many employees would share in the payment.

The case, which involved employees in the company's California-based studios, alleged that EA improperly misclassified some of its software engineers so that they would be exempt from overtime payments. Disgruntled employees filed suit against the video-game software giant in February 2005.

Last fall, EA

reached an agreement to settle a similar lawsuit filed in 2004 by some of the company's former and current graphic artists. As with the software programmers, the graphic artists alleged that EA had avoided paying them overtime by improperly classifying their positions.

The company said the settlement likely won't have any impact on its fourth-quarter financial results, which it plans to announce next week.

In after-hours trading, EA shares were up 11 cents, or less than 1%, to $54.98. The company's stock closed regular trading off a penny to $54.87.