Lawsuit Overview
April 30, 2015 - The court granted defendants‘ motion to dismiss without leave to amend.
January 16, 2015 - The defendants filed a motion to dismiss.
November 19, 2014 - The lead plaintiffs filed an amended complaint.
October 20, 2014 - The court granted the defendants' motion to dismiss with leave to amend.
June 9, 2014 - The defendants filed a motion to dismiss.
April 11, 2014 - The lead plaintiffs filed a consolidated complaint on behalf of investors who purchased Electronic Arts Inc (NASDAQ: EA) common shares between May 8, 2013 and December 5, 2013. The lead plaintiffs allege that the defendants violated the Securities Exchange Act of 1934 by issuing false and misleading statements between May 8, 2013 and December 5, 2013.
February 25, 2014 - The lead plaintiffs and the lead counsel were appointed.
January 22, 2014 - All cases were consolidated.
December 17, 2013 - An investor in shares of Electronic Arts Inc (NASDAQ: EA) filed a lawsuit in the U.S. District Court for Northern District of California against Electronic Arts Inc over alleged violations of Federal Securities Laws in connection with certain allegedly false and misleading statements made between July 24, 2013 and December 4, 2013.
According to the complaint the plaintiff alleges on behalf of all persons or entities who purchased or otherwise acquired Electronic Arts Inc (NASDAQ: EA) between July 24, 2013 and December 4, 2013, that Electronic Arts Inc and certain of its officers and directors violated the Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
More specifically, the plaintiff alleges that defendants issued allegedly materially false and misleading statements highlighting the purported strength of Electronic Arts Inc's rollout of version 4 of its Battlefield video game series, which had provided approximately 11% of its revenues in fiscal 2012. The plaintiff claims that based on the purported strength of the Battlefield 4 rollout then underway, defendants issued strong fiscal 2014 financial guidance for Electronic Arts Inc and actually increased that guidance on October 29, 2013.
The plaintiff says that on November 15, 2013, the day Sony released its new Play Station 4 console, it was disclosed that players of Electronic Arts Inc’s games were being subjected to multiple glitches and significant crashes when attempting to play Electronic Arts Inc’s titles on Play Station 4.
Furthermore the plaintiff claims that on December 4, 2013, it was disclosed through discussions defendants had with video game bloggers that due to bugs, connectivity issues, server limitations, and various other problems plaguing Battlefield 4, Electronic Arts Inc had been allegedly forced to halt the Battlefield 4 rollout and other projects until the problems with Battlefield 4 could be fixed.
Shares of Electronic Arts Inc (NASDAQ: EA) declined from almost $28 in September 2013 to as low as $20.54 per share on December 5, 2013.
On December 17, 2013, Electronic Arts Inc (NASDAQ: EA) shares closed at $22.75 per share.