In a significant legal development, attorneys representing student athletes have raised concerns about misleading practices by third-party companies targeting individuals eligible for a landmark $2.7 billion settlement with the National Collegiate Athletic Association (NCAA). During a recent court session, the lead attorneys emphasized to U.S. District Judge Claudia Wilken that students are being misled into believing they must hire these external services to secure their rightful compensation.
The settlement, which addresses three lawsuits alleging that NCAA regulations prohibiting payments to athletes violated U.S. antitrust laws, has the potential to benefit hundreds of thousands of student athletes. It not only includes past monetary damages but also allows schools to directly compensate athletes for the first time. The NCAA has consistently denied any wrongdoing in this matter.
In a court filing submitted late Tuesday, the plaintiffs’ attorneys urged Judge Wilken to mandate that companies advertising services to prospective class members clarify that such assistance is not necessary to participate in the settlement. The deadline for athletes to submit claims is January 31, with a final approval hearing scheduled for April.
While it is common for third-party firms to offer services related to litigation settlements, recent trends have prompted alarm among legal professionals regarding fraudulent activities associated with major settlements. Issues such as imposter websites and false claims have emerged, complicating the process for legitimate claimants.
Steve Berman of Hagens Berman Sobol Shapiro and Jeffrey Kessler of Winston & Strawn, representing the athletes, highlighted that some vendors have made misleading claims suggesting that hiring them is essential for maximizing settlement payouts. “Our warning to the court aims to ensure that athletes aren’t taken advantage of,” Berman stated. He further emphasized that there is “no need for athletes to seek help in making claims or incur any charges for it.”
In response to these developments, Judge Wilken has requested any opposition to the plaintiffs’ requests by next Monday. The case is officially titled In re College Athlete NIL Litigation, filed in the U.S. District Court for the Northern District of California under case number 4:20-cv-03919-CW.
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