If this
isn't poetic justice I don't know what is...
It seems EA
has finally ticked off someone other than their customers. In a filing Tuesday (Dec 17, 2013) A class
action suit was brought against EA by shareholders of the company who purchased its stock between July 24th and December 4th of this year.
The suit is
being brought
because....
"The complaint charges Electronic Arts and certain of its
officers and directors with violations of the Securities Exchange Act of 1934. ...
...The complaint alleges that
during the Class Period, defendants issued materially false and misleading
statements highlighting the purported strength of the Company’s rollout of
version 4 of its all-important Battlefield video game series..."
In other words the
plaintiffs believe that EA knew they had huge problems with Battlefield 4 but
covered it up to boost their stock price.
Worse, when EA had to redirect all its resources to fixing their
flagship game it caused other releases to be delayed which hurt sales. The plaintiffs contend that all of this
ultimately caused as much as a 28% devaluation
of their stock.
It's unlikely the suit will
get far unless there's concrete proof of a deception and not just inept
management. We're talking
about shares of stock here after all which are volatile instruments to begin with.
This also does nothing for
the millions of EA customers who've suffered through the past 2 months with an
overpriced and flawed purchase.
I can't say I'm surprised
that someone wanted to sue EA over BF4, what I am surprised by is that it was
their shareholders and not their customers.
If I've said it once I've
said it 1000 times. Never buy anything
based on hype. That includes games,
movies and especially securities.
If you're a shareholder
you need to visit the following site by February 15th, 2014 to join the class
action.
Good luck!
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