The law firm of Robbins Geller Rudman & Dowd LLP, has filed for legal action against Electronic Art’s troubled shooter, Battlefield 4. The firm alleges that EA Violated the Securities and Exchange Act during the specified period by promoting the strength of Battlefield 4’s development.
During the Class Period, defendants issued materially false and misleading statements highlighting the purported strength of the Company’s rollout of version 4 of Electronic Arts’ all- important Battlefield video game series that had provided approximately 11% of its revenues in fiscal 2012. According to defendants, the Company then “couldn’t be happier with the quality of the games [its] teams [were] producing or the early reception those games [were] getting from critics and consumers,” specifically highlighting that the rollout of Battlefield 4, which had been announced earlier in July 2013, had already drawn “spectacular praise.” Defendants further promised that “EA [was] in very good shape” and that “[t]he big bets [it had] made with blockbusters like . . . .Battlefield 4 . . . [were] resonating with critics and consumers.” Based on the purported strength of the Battlefield 4 rollout then underway, defendants issued strong fiscal 2014 financial guidance for the Company and actually increased that guidance on October 29, 2013. The price of Electronic Arts’ stock steadily climbed on these statements, reaching a Class Period high of $28.13 per share by August 23, 2013… However, defendants’ Class Period statements were materially false and misleading because they failed to disclose and misrepresented the following adverse facts which were known or recklessly disregarded by [the] defendants.
DICE has acknowledged the issues facing Battlefield 4, and has placed all future projects on hold until the game is fixed.
You can read the class action suit in its entirety here.