One of the Battlefield 4 Class-Action Lawsuits Has Been Dropped
Back in December, we brought you news of a pair of class-action lawsuits being brought against EA on behalf of investors as a result of the poor state of Battlefield 4 at release and the connection that the condition of the game affected the company’s share price.
This weekend, a little digging by GameSpot found that one of the two class-action lawsuits against EA over Battlefield 4 appears to have disappeared. That marks the first time in recent memory that EA has one something that isn’t the worst company in America award.
The website of law firm Robbins Geller Rudman & Dowd LLP no longer lists any information about the lawsuit. This may be a result of their investigations into the lawsuit or that they didn’t have a lead plaintiff for the suit.
The lawsuit alleged that EA intentionally made false statements about Battlefield 4 that resulted in an increase in the company’s share price. When the game was released in November with numerous issues, the company’s stock price went down which harmed shareholders. A number of EA senior executives also sold shares during the stretch covered by the suit from July 24th to December 4th. The crux of the suit was if EA misled shareholders by withholding information about BF4 that would affect share price if it came out as it was known.
There was also the contention that devoting all of DICE’s resources to fixing the bugs in Battlefield 4 delayed the delivery of BF4 DLC and other DICE products which would impact EA’s revenue and did result in EA’s share price decreasing. EA quickly did an about-face saying that nothing was being delayed by changing internal priorities and the share price rebounded. Whether EA’s second statement was true and the effect of that first statement could have impacted the wealth of shareholders even after the correction would form the basis of that part of the lawsuit.
Obviously, Robbins Geller Rudman & Dowd LLP isn’t going forward with a lawsuit that EA was, naturally, very dismissive of when it was first filed.
There was also a second lawsuit related to Battlefield 4. That lawsuit, headed by Holzer Holzer & Fistel, hasn’t been reported on since December. There is no word as to the status of their lawsuit.