SCEA coughs up US$8.5 million to settle lawsuit

Sony 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

Sony 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