If approved by the court SEGA will pay $1.25 million to end a class-action lawsuit brought against the publisher and Gearbox Software claiming the pair falsely advertised Aliens: Colonial Marines using fake E3 and other trade show demos.

The payment will clear SEGA of further legal action, but Gearbox will have to continue fighting its corner. Furthermore, the settlement is not to be deemed an admission of guilt by SEGA. The publisher is sticking to its stance of denying any wrongdoing, stating that the settlement has been agreed upon because of the ongoing cost of the lawsuit and the uncertainty of such litigation.

The $1.25 million will be paid by SEGA into a settlement fund, and then distributed thus: $312,500 to cover attorney fees for the plaintiffs, $200,000 for cost of administration, $2,500 to the plaintiff, and the remainder to eligible customers who purchased the game.

Those seeking a cut of the settlement will be requested to fill out a three question claim form and must have purchased the game before February 13, 2013. The money received will not exceed the amount paid for the game.

Source: Polygon