Video Game Co. Investors Settle EA Merger Suit For $5M

Law360, Los Angeles (October 25, 2011, 8:38 PM EDT) -- A California judge gave preliminary approval Tuesday to a $4.75 million settlement resolving a shareholder class action against Jamdat Mobile Inc. over Electronic Arts' $680 million acquisition of the mobile video game maker.

The shareholders claimed several Jamdat board members hadn't disclosed numerous conflicts of interest before approving the merger with EA. The five members of the board were sued in December 2005, before the transaction was finalized, and accused of breaching their fiduciary duty by not maximizing the value of the transaction for shareholders....
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