SCEA coughs up US$8.5 million to settle lawsuit

Posted Jun 30, 2007 at 7:35PM by QJ Staff Listed in: News Tags: Activision, David Karraker, Electronic Arts, SCEA, Sony
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SCEA - Image 1Sony Computer Entertainment America has agreed to settle a class action suit filed by former and current employees who were not appropriately compensated for overtime work.

For its part, Sony has agreed to put up an US$ 8.5 million settlement fund which will be used to pay off the concerned personnel. In addition, the company also agreed to reclassify the positions of its artists and other production crew in accordance to the federal Fair Labor Standards act.

The suit was filed in 2005 when employees responsible for the copying and production of images complained of not being paid overtime compensation, paving the way for Andrew Wilson v. SCEA in court.

Sony, however, maintains its innocence even if it agreed to a settlement. In a statement, the company said it "denies the allegations in the lawsuit and admits no liability or wrongdoing in settlement." In more recent news, SCEA Director of Corporate Communication David Karraker said that the lawsuit has no impact on the company's financial status for the quarter.

The suit is similar in context to those filed against big game companies Electronic Arts and Activision lately. The game companies have all maintained that they are not at fault but have opted for settlement for the sake of expediency.

Via Gamedaily

 
 
 

Comments [refresh]

by Eclipze_ - 2007-06-30 20:14
» umm...

Not to be mean but... WTF does this have to do with games or the console?

by beermanmike - 2007-07-01 05:04
» because

its not your local no-name business down the street, its sony. but your kinda right

by datnizzle - 2007-07-01 05:16
» new trend

This probably had something to do with a trend that has been going around for a while. What you do is give your employees new titles and management tags, that way you can work them like hell and not pay overtime, lots of big companies tried to do this, some employees fought it some had no idea what was happening until they saw no overtime on their checks. Your job doesn't change, just the compensation.

`

by HG99 - 2007-07-01 10:23
» nowadays...

Jeez, nowadays people sue for pretty much everything...

by Darkthunder90 - 2007-07-01 11:47
» Phew

I thought this was about the cathedral being in resistance.

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