A second firm has taken EA to court over statements made by the company regarding Battlefield 4. The publisher is already under investigation for “misleading investors”, and this new one is a class action lawsuit from the investors themselves.
Robbins Geller Rudman & Dowd LLP observe the significant drop in EA share value since the launch of BF4, despite many statements from the publisher that highlight the “purported strength” of the game.
These statements saw EA share price rise, “allowing certain of Electronic Arts’ senior executives to sell their Electronic Arts stock at artificially inflated prices.”
After the launch, things got worse, says the firm:
on November 15, 2013, the day Sony released its new Play Station 4 (“PS4”) console, it was disclosed that players of Electronic Arts’ games were being subjected to multiple glitches and significant crashes when attempting to play Electronic Arts’ titles on PS4. The price of Electronic Arts stock fell on these disclosures, declining more than 7% from a close of $25.96 per share on November 14, 2013 to close at $24.06 per share on November 15, 2013. Then, on December 4, 2013, it was disclosed through discussions defendants had with video game bloggers that due to bugs, connectivity issues, server limitations, and various other problems plaguing Battlefield 4, Electronic Arts had been forced to indefinitely halt the Battlefield 4 rollout and other projects until the problems with Battlefield 4 could be fixed. The price of Electronic Arts shares declined on this news from a close of $22.34 on December 4, 2013 to close at $21.01 on December 5, 2013, sending the share price down more than 28% from its Class Period high.
EA has responded:
We believe these claims are meritless. We intend to aggressively defend ourselves, and we’re confident the court will dismiss the complaint in due course.
The court case potentially includes anyone who purchased EA common stock within the “class period” – July 24, 2013 until December 4, 2013. No lead plaintiff has yet been named.