Tag Archives: Financial Fraud

EA Sued By Investors In Class Action Lawsuit For False Advertising Battlefield 4, Financial Fraud, Stock Manipulation, Embezzlement

Over the past couple of weeks RealGamerNewz has been exhaustively reviewing legal documentation from the parties Robbins Geller as well as the original investigation that was brought forward by Holzer Holzer and Fistel. Judging by documentation provided to investors as well as the press, we feel confident now to speak on our own (not just repeating what others have said) in saying that it’s exactly what it looks like. EA executives are being held responsible for crimes that they have indeed committed against the investors of their company and have also resulted in hurting the video game industry as well as fans of the Battlefield series. There’s more to it than is being currently reported by mainstream media though, as of course RealGamerNewz is always willing to speak what others will leave out.

First let’s cover the basics…

  • “Plaintiff seeks to recover damages on behalf of all purchasers of Electronic Arts common stock during the Class Period (the “Class”)”

This is the statement that reads on the EA lawsuit and begins a myriad of reasons. In common language we can describe them like this – EA execs made statements that raised the price of Electronic Arts stock which they allegedly knew to not be true and then sold their own stocks while at a record high. Here’s a small image major mainstream press has taken of the second half of court documents which are available to all (here) and break down how much money they essentially embezzled from their own company by doing this type of stock manipulation and financial fraud.

Now for the stuff other sites and magazines aren’t reporting  – on top of this, EA also mentioned that with Battlefield 4 they were the most pre-ordered next-generation game which we personally found extremely doubtful even though the Battlefield series is viewed as a fan favorite – it has never been the best seller in the FPS genre. Approximately a day after making this statement though charts were released showing Call of Duty: Ghosts as the clear winner of such a title forcing us to believe that EA lied about this as well. If not lies, there must have been a twist on the truth so extreme and far-reaching that it would likely only be labelled fraud in the court of law.

The next complaint is that the game suffered too many bugs at launch causing the Delay of BF4 DLC and other projects from DICE / EA Games which will inevitably result in less money for investors (not to mention BF4 failed to meet sales expectations and pre-sale claims). We have it on good authority (from un-named sources within DICE) that EA Games refused the development firm’s plea for a next-gen Beta due to agreements and contracts with Sony and Microsoft related to launch-day sales. Beyond that, DICE has come on record in the public as saying that EA Games is to blame for issues of the game crashing. Could it be that these issues are the result of DRM being removed from the title post-haste since it became such a taboo word when Sony defamed the business practice at PS4’s reveal? We aren’t entirely sure, but DICE says EA is at fault for the bugs and that they couldn’t fix them any faster if they wanted to.

Stay tuned for more on this developing story as it becomes available to us, and don’t believe everything that you read either for or against EA in this situation since most journalists do not read all of the legal documents. This has taken us a long time but is very beneficial as we discovered a lot of not-well-known details during the Call of Duty lawsuit fiasco that happened between Activision and COD’s creators.

Editor’s Note: RealGamerNewZ has moved web servers, some older posts can no longer be commented on and have been preserved without their images. Thank you for your understanding in this matter. This article was written by Mitch Walters on 20131220 and was last modified on 20131220 .