Stock Market News

US Justice Dept questions landmark NCAA athlete pay settlement

2025.01.17 18:45

By Mike Scarcella

(Reuters) – The U.S. Justice Department on Friday questioned the fairness of a private $2.8 billion settlement with the National Collegiate Athletic Association, suggesting it might not go far enough to compensate student athletes.

The Biden administration expressed its views in a filing in the federal court in Oakland, California, where the NCAA has been mired in class action litigation with students for years.

The settlement, which requires court approval, would be among the largest-ever recoveries in a class action and allows NCAA member schools to make payments directly to student athletes for the first time.

In addition to the $2.8 billion settlement fund, academic institutions are expected to pay out some $20 billion over the next decade under the terms of the deal.

Justice Department antitrust officials said in their filing that they were concerned about a provision of the 10-year settlement that caps money available for schools to pay athletes.

The filing said, “while the proposed settlement allows for some relief, it still functions as an artificial price cap on what free market competition may otherwise yield.”

It urged the court to reject the settlement or require language that makes clear that the cap does not bar or apply to potential future lawsuits.

The NCAA and Justice Department did not immediately respond to requests for comment. The Justice Department is not a party in the lawsuit. The NCAA denied wrongdoing in agreeing to settle.

In a statement, a lead attorney for the plaintiffs, Steve Berman, defended the settlement and said its terms and conditions were clear.

Berman said failure to approve the deal “would scuttle billions of dollars going to student athletes.”

U.S. District Judge Claudia Wilken will weigh final approval of the settlement at a hearing in April.

The case is In re College Athlete NIL Litigation, U.S. District Court, Northern District of California, No. 4:20-cv-03919-CW.

Read more:

Lawyers in NCAA athlete pay settlement ask for $515 mln legal fee award

© Reuters. FILE PHOTO: The seal of the U.S. Justice Department is seen on the podium in the Department's headquarters briefing room before a news conference with the Attorney General in Washington, January 24, 2023. REUTERS/Kevin Lamarque/File Photo

NCAA’s $2.7 bln student athlete settlement wins preliminary court approval

NCAA’s $2.7 billion settlement faces objections from some students



Source link

Related Articles

Back to top button
bitcoin
Bitcoin (BTC) $ 94,002.19 1.53%
ethereum
Ethereum (ETH) $ 2,649.92 4.74%
tether
Tether (USDT) $ 1.00 0.02%
xrp
XRP (XRP) $ 2.42 4.17%
bnb
BNB (BNB) $ 633.48 2.35%
solana
Solana (SOL) $ 152.15 8.81%
usd-coin
USDC (USDC) $ 1.00 0.01%
dogecoin
Dogecoin (DOGE) $ 0.224654 6.78%
cardano
Cardano (ADA) $ 0.715973 6.18%
staked-ether
Lido Staked Ether (STETH) $ 2,646.42 4.67%
tron
TRON (TRX) $ 0.245224 0.81%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 93,933.17 1.59%
wrapped-steth
Wrapped stETH (WSTETH) $ 3,165.47 5.59%
chainlink
Chainlink (LINK) $ 16.15 7.63%
stellar
Stellar (XLM) $ 0.314115 3.91%
avalanche-2
Avalanche (AVAX) $ 23.03 6.40%
sui
Sui (SUI) $ 3.03 8.04%
litecoin
Litecoin (LTC) $ 121.68 4.39%
hedera-hashgraph
Hedera (HBAR) $ 0.212273 1.94%
the-open-network
Toncoin (TON) $ 3.56 4.87%
leo-token
LEO Token (LEO) $ 9.53 2.19%
usds
USDS (USDS) $ 0.996017 0.41%
shiba-inu
Shiba Inu (SHIB) $ 0.000014 6.60%
mantra-dao
MANTRA (OM) $ 8.14 3.05%
weth
WETH (WETH) $ 2,650.76 4.74%
polkadot
Polkadot (DOT) $ 4.65 6.17%
hyperliquid
Hyperliquid (HYPE) $ 20.94 10.86%
bitcoin-cash
Bitcoin Cash (BCH) $ 305.74 5.63%
ethena-usde
Ethena USDe (USDE) $ 1.00 0.05%
bitget-token
Bitget Token (BGB) $ 4.74 4.04%
wrapped-eeth
Wrapped eETH (WEETH) $ 2,809.05 4.83%
uniswap
Uniswap (UNI) $ 8.31 7.17%
monero
Monero (XMR) $ 232.57 0.38%
whitebit
WhiteBIT Coin (WBT) $ 27.40 0.17%
near
NEAR Protocol (NEAR) $ 3.27 2.68%
pepe
Pepe (PEPE) $ 0.000009 6.03%
bittensor
Bittensor (TAO) $ 428.81 2.47%
dai
Dai (DAI) $ 0.999771 0.01%
aave
Aave (AAVE) $ 229.27 6.20%
aptos
Aptos (APT) $ 5.69 6.43%
ondo-finance
Ondo (ONDO) $ 1.04 6.67%
internet-computer
Internet Computer (ICP) $ 6.68 4.48%
susds
sUSDS (SUSDS) $ 1.04 0.07%
tokenize-xchange
Tokenize Xchange (TKX) $ 37.44 1.29%
official-trump
Official Trump (TRUMP) $ 14.85 6.58%
ethereum-classic
Ethereum Classic (ETC) $ 19.45 5.16%
mantle
Mantle (MNT) $ 0.840523 7.80%
okb
OKB (OKB) $ 46.51 4.48%
gatechain-token
Gate (GT) $ 22.17 4.51%
coinbase-wrapped-btc
Coinbase Wrapped BTC (CBBTC) $ 93,913.16 1.64%