A week after one law firm announced it would be investigating Electronic Arts on if the publisher violated federal securities laws in the representation of software title Battlefield 4 to investors, another firm has filed a class-action lawsuit against the company on similar grounds, according to a report today from VG 24/7.
The law firm of Robbins Geller Rudman & Dowd LLP alleges in its filling that EA deliberately mislead investors on the strength of Battlefield 4 heading up to the launch of the Xbox One and PlayStation 4, which it claims artificially and fraudulently inflated share prices of the company.
The filing, posted on the Robbins Geller Rudman & Dowd website, claims that the veracity of the statements prompted stock prices to rise –– as high as $28.13 per share on Aug. 23 –– allowing certain “Electronic Arts’ senior executive to sell their Electronic Arts stock at artificially inflated prices.”
It’s been well documented after launch of the problems Battlefield 4 has faced, including “multiple glitches and significant crashes,” as well as “bugs, connectivity issues, server limitations, and various other problems,” says the law firm.
However, Robbins Geller Rudman & Dowd said EA acted in malice, claiming the publisher knew Battlefield 4 was “riddled with bugs and multiple other problems, including downloadable content that allowed players access to more levels of the game, a myriad of connectivity issues, server limitations, lost data and repeated sudden crashes, among other things.”
EA fired back, issuing this statement to GameInformer today:
“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.”
Read the Examiner story from last week highlighting the investigation by Holzer Holzer & Fistel into similar allegations about EA by clicking here.