The NCAA has sued Electronic Arts and the Collegiate Licensing Company over its proposed settlement with student athletes from late September, Bloomberg reported. The $40 million settlement was in regards to the use of student athlete likeness, an ongoing legal dispute that stemmed back to May 2009. As a result of the string of lawsuits, EA canceled its college football game that was set to launch in 2014, which started with the NCAA's decision to not renew its licensing contract with the publisher in July.

Filed in a Georgia state court on November 4, the lawsuit from the NCAA alleges that EA did not agree to compensate the NCAA for losses related to legal claims from student athletes, and that the publisher did not have liability insurance to do so. EA's proposed $40 million settlement would negate the company's contractual obligations to idemnify the NCAA for any liability and attorney fees related to the lawsuits.

We have contacted both EA and the CLC for comment.