A federal judge cited several reasons Monday for rejecting a class action settlement over an allegedly rigged video arcade game, including that the proposed attorney fees exceeded payouts to aggrieved consumers.

Judge Richard Berman (See Profile) Monday refused to approve the $650,000 payout to gamesters allegedly defrauded over Sega’s Key Master game because of an implausible method of identifying, notifying and paying the plaintiffs and because their attorneys stood to be paid $850,000 under the deal.

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