Leading games developer Electronic Arts is being taken to court over claims that it provided falsified details on Battlefield 4 to help inflate its stock prices.
The latest in a series of issues to befall EA following the recent Battlefield 4 launch, US law firm Robbins, Geller, Rudman and Dowd has filed a class action lawsuit against the publisher on behalf of investors who bought stock in the company between July 24 and December 3 2013.
According to the law firm, earlier this year EA made statements which violated the 1934 Securities Exchange Act. It is claimed that the company offered “materially false and misleading statements” about the first-person shooter, after which “the price of Electronics Arts’ stock steadily climbed on these statements.”
The law firm’s filing added that EA’s stock prices reached “a Class Period high of $28.13 per share by August 23, 2013 and allowing certain of Electronic Arts’ senior executives to sell their Electronic Arts stock at artificially inflated prices.”
Although EA’s share prices rose earlier in the year, the Battlefield 4 release was followed by a mass of consumer complaints due to a number of high-profile bugs and glitches with the game. On top of this, a number of promised Battlefield 4 updates to fix these issues have been hit by continued delays.
EA has flatly refused these claims, suggesting that the Robbins, Geller, Rudman and Dowd filing is “meritless.”
"We believe these claims are meritless. We intend to aggressively defend ourselves, and we're confident the court will dismiss the complaint in due course,” the publisher said in an official statement.
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