Legal News

Class action approved between NCAA, men's basketball, football players

By Jason Siegel

A federal judge has approved a class action settlement between the National Collegiate Athletic Association (NCAA) and Division 1 football and men's basketball players alleging that the organization limited the amount of financial aid available to them as college students.

As part of the settlement, the NCAA has agreed to provide an additional $218 million in financial aid for student athletes to NCAA Division 1 member institutions during academic years beginning in 2007-08 through 2012-13, according to a press release issued by Houston's Susman Godfrey, the law firm representing the plaintiffs. Jason White v. National Collegiate Athletic Association, No. 2:06-cv-0999 (C.D. Calif.)

The NCAA also has agreed to provide $10 million during a three-year period for former student athletes seeking reimbursement for educational expenses.

Beginning on Monday, Aug. 11, class members could receive up to $2,500 per year for three years of expenses incurred while they were obtaining an undergraduate, graduate or professional degree or were enrolled in a professional certification program. They also could receive a $500 payment toward career development programs.

Also in the settlement, the NCAA agreed to provide health insurance to student athletes in Division 1 schools, arrange for accident insurance for injuries of student athletes at Division 1 schools and look into offering student athletes scholarships through graduation.

The class includes students who were in Division 1 football programs and men's basketball programs at colleges and universities beginning on Feb. 17, 2002.

The judge, who approved the settlement last week, has granted attorney fees of $8.6 million, plus interest. The nine named plaintiffs each received a $5,000 incentive award.

Plaintiffs' attorney Stephen E. Morrissey, a partner in the Los Angeles office of Susman Godfrey, and a lawyer for the NCAA, David Balabanian, a partner in the San Francisco office and chairman of the litigation area at Bingham McCutchen, did not return a call for comment.

-- Amanda Bronstad

Full post as published by Legal Pad | LA on August 12, 2008 (boomark / email).