EA sued for misleading investors after botched BF4 launch

So I'm just checking, EA gave the directors options, which they then sold back to the market and realized a gain on the difference between the share price and option price. That and the share price was boosted on an earnings projection by EA on the basis of BF$.

Correct me if i'm wrong but didn't EA sell BF$ by the truckload?
 
While EA did sell a lot of copies of BF4, the reports about bugs and crashes affects the trust in a company, which devalues it's shares. At least that's what I understand.

EA will now have to spend money to fix the bugs in BF4, and they are also delaying DLC. This affects the profit in terms of potential sales as well as new expenses. Less profit means smaller dividends being paid out to shareholders, making the shares less valuable.
 
Suck iiiiiiiit EA! Bastards deserve every bit of being sued. Hope you get sued again soon you greedy animals! And give DICE their IP back. Keep your dirty, greedy paws of BF. And just games in general!

I loved this article. Made me smile all the way.
 
What's this? A gaming company getting sued for a buggy, crashing mess? I thought I'd never see the day considering the gaming industry just feels it's omnipotent and never ever has to actually answer for anything.
 
Murph said:
What's this? A gaming company getting sued for a buggy, crashing mess? I thought I'd never see the day considering the gaming industry just feels it's omnipotent and never ever has to actually answer for anything.
Click to expand...

Can you feel the feeeeeelz bru? I love it!
 
:D Hahaha

It seems too good to be true, but

A01CH5O.jpg
 
to0kenZA said:
Suck iiiiiiiit EA! Bastards deserve every bit of being sued. Hope you get sued again soon you greedy animals! And give DICE their IP back. Keep your dirty, greedy paws of BF. And just games in general!

I loved this article. Made me smile all the way.
Click to expand...

Me too!

I am glad some action is being taken against EA. Hope they fall hard on their assess!!!

For me, It really hurt when I bought a broken NFSR for PC :( And it doesn't look like they going to fix it.
 
But this isn't about bad games or crappy bugs, it's about some billionare losing 1% off his portfolio and looking for somebody else to pay up. BF4 is just the lamb on the table.
 
Ike, I don't think you quite understand the gravity of the matter here. Here's an excerpt from the Gamespot article on the matter;

Specifically, the complaint alleges that during the July 24-December 3 Class Period defendants issued "materially false and misleading statements" regarding Battlefield 4.

As a result of these statements, EA's share value rose and reached a high for the period of $28.13--allowing certain EA senior executives to sell their shares at the inflated price, the suit claims.
Click to expand...

Combined with the fact that various executives sold thousands of shares just before BF4's release, this is not looking good.

http://www.gamespot.com/articles/cl...-4-ea-calls-it-meritless-update/1100-6416790/
Click to expand...

This sounds an awful lot like stock manipulation, which is something not taken lightly. Unless you understand how serious stock manipulation is taken, you will not understand why the lawsuit is about more than "some billionaire losing 1% off his portfolio and looking for someone else to pay up."

So let's break down the sequence of events quickly:

  1. EA releases misleading information/statements about BF4 which leads to an increased share value
  2. EA execs sell their stock right before launch (ironically, right before disaster strikes)
  3. BF4 launches, is disastrous and EA has to dedicate more time and resources to fixing it than originally anticipated, also halting several other projects in the process
  4. Share prices plummet as a result of the disastrous launch

Are you starting to see the picture now? Shareholders were being fed misinformation while EA executives were unloading their stock en masse right before disaster struck.
 
You must log in or register to reply here.
Back
Top