EA hit with class action lawsuit over Battlefield 4 issues

lawsuitUS law firm Robbins Geller has filed a class action lawsuit against EA following what has been dubbed a “failed launch” of Battlefield 4, which adversely impacted EA’s share price.

The lawsuit seeks to recover damages on behalf of all investors who bought shares in the company between July 24 and December 4, and “charges Electronic Arts and certain of its officers and directors with violations of the Securities Exchange Act of 1934.” Electronic Arts is accused of issuing “materially false and misleading statements” between the two dates.

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 and allowing certain of Electronic Arts’ senior executives to sell their Electronic Arts stock at artificially inflated prices.

It continues: “(a) Battlefield 4 was riddled with bugs and multiple other problems, including downloadable content that allowed players access to more levels of the game, a myriad of connectivity issues, server limitations, lost data and repeated sudden crashes, among other things; (b) as a result, Electronic Arts would not achieve a successful holiday season 2013 rollout of Battlefield 4; (c) the performance of the Electronic Arts unit publishing Battlefield 4 was so deficient that all other projects that unit was involved in had to be put on hold to permit it to focus its efforts on fixing Battlefield 4; and (d) as a result, Electronic Arts was not on track to achieve the financial results it had told the market it was on track to achieve during the Class Period.

The complaint further alleges that, 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.

  • Nigel

    The stock market is a gamble, it winds me up when people gamble then complain that they lost.

    Anyway EA’s reputation has been mud for a while with their focus on getting people to pay a premium purchase price then wanting to charge even more for DLC for stuff that should have been in the game.

    Saying that, BF4 is a joke, I had two corrupted campaign saves and now given up playing it, rather than class action lawsuit for investors I wish they would just refund the money we paid for what is more like a beta game.

    Don’t get me wrong I love BF4 as a game, but hate the way it was pushed out either with them knowing the bugs were their or doing a very poor job with QA.