EA Accused Of Violating Securities Laws Based On “Battlefield 4” Representations

battlefield-4-ps4Electronic Arts (“EA”) has been sued for allegedly violating securities laws, through alleged “false and misleading” public statements regarding the preliminary popularity and quality of the first-person shooter video game “Battlefield 4.”

In the lawsuit filed December 17, 2013 in the Northern District of California, the plaintiff generally alleges that beginning in mid-2013, EA and certain of its executives made material misrepresentations regarding the anticipated strength of the impending “Battlefield 4” rollout, as well as the game’s quality and functionality.  These misrepresentations (according to plaintiff) predictably inflated EA’s stock price, whereupon certain EA executives allegedly “cashed out” their stock holdings.  Plaintiff and other EA investors purportedly suffered harm several months later in December 2013, when EA purportedly conceded the falsehoods and the value of EA stock fell.

Plaintiff maintains the lawsuit on behalf of himself and a putative class of all who “purchased or otherwise acquired Electronic Arts common stock between July 24, 2013, and December 4, 2013,” the time period encompassing EA’s alleged misrepresentations.  The lawsuit is Kelly v. Electronic Arts, Inc., et al. No. 3:13-cv-05837-SI (N.D. Cal., December 17, 2013).