The promised lawsuit by law firm Robins Geller against Electronic Arts on behalf of investors who lost money following the launch of Battlefield 4, which coincided with a severe drop in the company’s stock price, is going ahead as planned.<\/p>\n
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\/s are seeking to recover damages on behalf of all purchasers of Electronic Arts common stock during the Class Period.<\/p>\n
The lawsuit covers money lost by investors between the period of 24 July 2013 and 4 December 2013, which is called the “class period.”<\/p>\n
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.<\/p>\n
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.<\/p>\n
Once the game launched on PS4 on 15 November 2013, the stock value began to decline due to reports of “multiple glitches and significant crashes” related to the PlayStation 4 version. Stock value fell again on December 4 when Electronic Arts told the gaming community that work on DLC and more content for Battlefield 4 would cease until the problems could be fixed.<\/p>\n
“Ultimately,” notes Robins Geller in their letter to investors, “shares declined more than 28 percent in value since the reported high in October.”<\/p>\n
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