'It is entirely possible that claiming class members will receive a full refund, making them more than whole,' claims the filing, 'Considering that they will also get to keep the video game.'
Sega must be regretting its involvement in Aliens: Colonial Marines, given that it could cost the company $1.25 million. That's the amount Sega has offered to settle the class action suit against it which, according to the filing, may leave the claiming class members better off than they were before. They'd get a full refund, and also get to keep the game.
Back in May when news of the class action hit, Sega said the suit was "without merit and we will defend it vigorously." Four months later, it is now willing to pay out. The Plaintiff John Locke, as class representative, gets $2,500 in addition to any other benefit he might be entitled to under the settlement, $312,500 has been set aside to cover attorney's fees, $200,000 is earmarked for administration costs, and the rest goes to all the other claiming class members, assuming the settlement offer is accepted. If there's any cash left over, it gets donated to the National Consumer Law Center and Consumer's Union.
The settlement does not cover Gearbox which, when all this began, described the suit as "beyond meritless." The filing explicitly states that "litigation is expected to continue against Gearbox even if the proposed settlement with Sega is approved." Gearbox has tried to argue that it ought to be dropped from the suit, claiming that it received no profit from the game, but so far that argument doesn't seem to have been accepted.
There were originally two Plaintiffs involved in the case, Locke and Damion Perrine. Perrine subsequently dropped out of the suit, as he had been incarcerated in Pennsylvania. Perrine remains a class member and will benefit from the settlement, but Locke is now the sole Plaintiff.
Source: Sega Settlement Documentation