Class Action Filed Against Electronic Arts Over Battlefield 4

On Tuesday the law office of Robbins Geller Rudman & Dowd LLP submitted a class action lawsuit against Electronic Arts in the United States District Court for the Northern District of California. The lawsuit is on behalf of Electronic Arts common shareholders who purchased the game publisher's stock between July 24, 2013 and December 4, 2013, aka the "Class Period."

According to the lawsuit, Electronic Arts allegedly issued "materially false" and "misleading" statements highlighting the purported strength of the company's rollout of Battlefield 4 this fall. Electronic Arts then issued strong fiscal 2014 financial guidance for the company, and increased that guidance on October 29. Thanks to these positive statements, stock steadily climbed to as much as $28.13 per share, allowing senior executives to sell their stock at artificially inflated prices.

Once November 15 came around, stock value began to decline due to reports of "multiple glitches and significant crashes" related to the PlayStation 4 version of Battlefield 4. Stock value fell again on December 4 when Electronic Arts told the gaming community that sales of Battlefield 4 would cease until the problems could be fixed. Ultimately, shares declined more than 28 percent in value since the reported high in October.

Statements made by Electronic Arts during the Class Period were "materially false and misleading" because they failed to disclose -- and misrepresented -- a number facts that were allegedly known to or recklessly disregarded by the company. For one, Battlefield 4 was riddled with bugs and multiple other problems, and as a result, Electronic Arts would not achieve a successful holiday season 2013 rollout of Battlefield 4.

Secondly, the unit responsible for Battlefield 4 was so "deficient" that all other projects were put on hold so that the entire unit could focus on fixing the problems. Because of this, there was no way Electronic Arts would be on track to achieve the financial results it had told the market it was on track to achieve during the Class Period.

The complaint charges Electronic Arts and a number of its officers and directors with violations of the Securities Exchange Act of 1934. The unnamed Plaintiff is seeking to recover damages on behalf of all purchasers of Electronic Arts common stock during the Class Period.

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  • itsnotmeitsyou
    Game companies serve stock holders, not gamers.
    Oil companies serve stock holders, not drivers.
    Governments serve stock holders, not citizens.

    Go indie.
    18
  • Other Comments
  • bsharrah
    Figured something like this would occur. Way too many issues with this game for people to just roll over and accept it. Never saw a console game have this many problems. To this day I can't play campaign and be able to save my progress.
    -1
  • ddpruitt
    What about all of us who gave EA money and expected something in return? Anyone paying attention to EA over the last few years knew they were gambling money on EA's stock (worst company 3 years running, botch roll outs of several games, important devs leaving, etc). Is there anyone wiling to protect us gamers who actually paid for a product instead of some wealthy jackass lawyer representing some wealthy asshole who was making a bet on the stock market?
    3
  • AJSB
    Last EA/DICE i bought was BFBC2 and i swear never again....

    In watched with amusement all the crap (yeah , that's the only world that can describe it) made by EA/DICE since then like MoH, BF3, MoHW and BF4....

    The most funny thing is that new game as the same type of issues than previous....only WORSE.
    0