Battlefield 4 caused a significant drop in stock price new class action lawsuit claims

Battlefield 4

By on February 3, 2014 at 6:21 pm

What do you think of Battlefield 4? It undeniably had its fair share of bugs at launch, but, as Bennet’s excellent review explained it’s not a complete travesty. But while its fans and detractors are usually content to hash out their differences using a variety of curse words on the internet, one law firm has decided to do something about it, bringing forth a class action lawsuit against EA for the troubles the game caused the corporation and its investors.

Yes, as Blue’s News notes, the oddly amateur looking Brower Piven firm have asked investors who lost money on EA stock during last year’s second half to participate in a class action suit as the lead plaintiff. As explained:

The complaint accuses the defendants of violations of the Securities Exchange Act of 1934 by virtue of the defendants’ failure to disclose during the Class Period that Battlefield 4, one of the Company’s signature video games, was riddled with bugs, connectivity issues, and several other problems that caused the EA unit publishing Battlefield 4 to put all other projects on hold to permit it to focus its efforts on fixing Battlefield 4. According to the complaint, following the November 15, 2013 disclosure that EA games experienced multiple glitches and significant crashes on the newly released Sony Play Station 4 console and the December 4, 2013 disclosure that bugs, connectivity issues, server limitations and other problems plaguing Battlefield 4 indefinitely halted the rollout of Battlefield 4 and delayed other EA projects, the value of EA shares declined significantly.

TL;DR – Battlefield 4 launched with significant bugs and connectivity issues, and the EA publishing unit responsible put all other products were put on hold to get everyone to focus on fixing it. Due to both the issues with Battlefield 4 and the halting of the other projects, EA’s shares declined in value.

To me that sounds like an incredibly odd reason to sue someone. It would be like if I accidentally bought a pair of daisy dukes and then had to wear them because all of my other clothes were in the wash, and then you were offended because I looked like a creepy idiot and you didn’t want to look at me. You’re hardly the primary party injured by my spectacular idiocy, and it seems like bad form to bring it up while I stand there in a pair of daisy dukes.

But what do I know? I’m not “A Professional Corporation”. And on the other hand, I certainly wouldn’t have a problem with someone stopping companies from releasing games before they are finished. We’ll let you know if any more details surface.

Source: Blue’s News

20 comments (Leave your own)

Aaaaand this is why i hate public companies… everything turns to shit when you sell stock to people.

 

Wait… so if you make an investment and it goes bad you can just sue? They are the idiots investing… risk and all that?

 

An odd reason? Investors lost money through reduced share prices as a result of the state of the game. I’m not saying that it’s right, but it hardly seems odd (to me, at least).

 

What do you think of Battlefield 4?

As an absolute Battlefield junkie, since way back, just let me say that BF4′s release has been a “tad” turbulent.
It was very obviously not ready, they prob should be held accountable, you expect stuff you buy to work, it’s simple.

 

robbo89:
Wait… so if you make an investment and it goes bad you can just sue? They are the idiots investing… risk and all that?

Believe it or not but you can get in serious trouble for misleading investors. Besides the fact the share price increased a fair bit when BF4 was released (and declined later), if the sales were adversely affected over time due to things EA did not disclose (such as the product being released before it’s ready, even though the beta had less bugs and as such the suing in the first place is completely idiotic because bugs happen) then they can get into big trouble for it.

The financial reports are supposed to disclose EVERYTHING that could influence an investor’s decision to invest.

I don’t even think EA have even announced the sales of the game since that time anyway (and contrary to some beliefs, they can’t release information secretly to shareholders because that is highly illegal) so it’d be too hard to tell if the sales were even impacted as a result or whether the decline was due to market panic.

 

ausjoker,

Justify it how you like joker, you’re not allowed to be mad at me for my daisy dukes >:|

 

whats even funnier is this will prolly lower stock price even more…..

 

And right here, ladies and gentleman, this sort of rubbish is why it’s hard to even get an admission of a feeling of guilt out of a major publisher for their product not being up to scratch these days. I detest the American legal system that seeks to litigate everything in sight. It genuinely only benefits the lawyers. Absolutely ridiculous.

 

robbo89:
Wait… so if you make an investment and it goes bad you can just sue? They are the idiots investing… risk and all that?

As much as it pains me to admit it, rapid101 is correct. If a company is saying one thing while they know the opposite is actually happening then they can be done for failure to disclose information.

I wonder if EA will try their YouTube trick on the judge and let him know that if he says the right things he will be paid for his comments ;)

 

This article and everyone here missed the point.

They are suing because employees (high-up ones) of EA sold they’re stocks in the company just prior to the launch of BF4. They participated in the hype train and helped inflate EA’s stock price while knowingly lying about the state of the game at release TO SHAREHOLDERS. Not customers.

This has absolutely nothing to do with BF4 being a buggy POS and DicEA lying to and ripping off loyal fans. None of that is illegal. Nobody gives a crap about disappointed gamers.

The point is that it is illegal for EA staff to sell stocks because of knowledge of a coming stock price tank without letting non-employee shareholders know about the issues.

It’s not too big a stretch to call it insider trading. This is what the class action lawsuit is trying to address.

And c0mc0, they will never admit guilt because not a single damn person at DICE or EA actually feels bad about the crap they released. DICE is packed wall to wall with arrogant, holier-than-thou pricks and EA is a multibillion dollar corporation, if they could profit off beating baby seals to death with clubs; I guarantee our beaches would be awash with pulverised baby seal brains by the morning.

 

LOL. Get a grip, mate. You don’t get to be making the most advanced game in the industry by being the sort that seeks money over all else and not giving a shit about your products. (Making games isn’t that lucrative for the actual coal-face workers). It’s clear to those that are not ranting incessantly that, while there are some MAJOR problems with the game, it still has some of the best graphics, audio and general gunplay in the entire industry. Your last rant there just isn’t backed up by facts. And given you’re unlikely to know a single person that works for DICE or EA, you’ll forgive me if I take your claims about how they feel with a pinch of salt.

BTW – I just want back and checked, and only one person could even fit in to your “everyone missed the point”…er…point.

Everyone but one was talking about shareholders, their expectations, investments and about them being lied to. We appreciate you weighing in with your expertise, but I think virtually everyone was on top of what was being discussed. ;)

 

Stuff like this is EXACTLY why big companies can’t.. repeat… CANNOT be honest with gamers.

I’m just going to link this back next time someone complains that a publisher or developer isn’t being forthcoming with known issues.

 

Murray Hibble,

Ummmm….. you do realize that EA is being sued for not disclosing know issues with the game don’t you?

 

Know what else lowers share price? Suing the company you invested in.

 

i didnt read the article… but i hate BF4. do i get some money now?

 

sirgriggles:
i didnt read the article… but i hate BF4. do i get some money now?

You only get paid for saying you love EA games, although in an ironic twist it looks like EA may have to pay people because EA didn’t mention the glitches in the comments.

 

I’m not sure this has much to do with EA, investors or gamers, it’s all about some dodgy back yard law firm trying to make work for itself.

 

Sure seems odd to me.

It’s their very own fault if they bet on a sick horse.

 

Battlefield 4 is the flagship title for EA so shares would somehow suffer, don’t you think? your opinion is wrong Liam

 

zakynthos,

Which part did you have a problem with? The part where I said it seemed odd to me based on a story I made up about wearing women’s pants or the part where I said I’m not a freaking lawyer so what would I know?

 
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