|[December 17, 2013]
Robbins Geller Rudman & Dowd LLP Files Class Action Suit against Electronic Arts, Inc.
NEW YORK --(Business Wire)--
Geller Rudman & Dowd LLP ("Robbins Geller") (http://www.rgrdlaw.com/cases/electronicartsinc/)
today announced that a class action has been commenced in the United
States District Court for the Northern District of California on behalf
of purchasers of Electronic Arts, Inc. ("Electronic Arts," "EA" or the
"Company") (NASDAQ:EA) common stock during the period between July 24,
2013 and December 4, 2013 (the "Class Period").
If you wish to serve as lead plaintiff, you must move the Court no later
than 60 days from today. If you wish to discuss this action or have any
questions concerning this notice or your rights or interests, please
contact plaintiff's counsel, Samuel
H. Rudman or David
A. Rosenfeld of Robbins Geller at 800/449-4900 or 619/231-1058, or
via e-mail at firstname.lastname@example.org. If
you are a member of this class, you can view a copy of the complaint as
filed or join this class action online at http://www.rgrdlaw.com/cases/electronicartsinc/.
Any member of the putative class may move the Court to serve as lead
plaintiff through counsel of their choice, or may choose to do nothing
and remain an absent class member.
The complaint charges Electronic Arts and certain of its officers and
directors with violations of the Securities Exchange Act of 1934.
Electronic Arts develops, markets, publishes and distributes video game
software content and services that can be played by consumers on a
variety of Internet-based electronic devices for video game consoles,
personal computers, mobile phones, tablets and electronic readers.
The complaint alleges that during the Class Period, defendants issued
materially false and misleading statements highlighting the purported
strength of the Company's rollout of version 4 of its all-important
Battlefield video game series, which had provided approximately 11% of
its revenues in fiscal 2012. Based on the purported strength of the
Battlefield 4 rollout then underway, defendants issued strong fiscal
2014 financial guidance for the Company and actually increased that
guidance on October 29, 2013. The price of Electronic Arts' stock
steadily climbed on these statements, reaching 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.
The complaint further alleges that, on November 15, 2013, the day Sony
released its new Play Station 4 ("PS4") console, it was disclosed that
players of Electronic Arts' games were being subjected to multiple
glitches and significant crashes when attempting to play Electronic
Arts' titles on PS4. The price of Electronic Arts stock fell on these
disclosures, declining more than 7% from a close of $25.96 per share on
November 14, 2013 to close at $24.06 per share on November 15, 2013.
Then, 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 had been forced to indefinitely halt the
Battlefield 4 rollout and other projects until the problems with
Battlefield 4 could be fixed. The price of Electronic Arts shares
declined on this news from a close of $22.34 on December 4, 2013 to
close at $21.01 on December 5, 2013, sending the share price down more
than 28% from its Class Period high.
According to the complaint, defendants' Class Period statements were
materially false and misleading because they failed to disclose and
misrepresented the following adverse facts which were known to or
recklessly disregarded by defendants: (a) 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; (b) as a result, Electronic Arts would not
achieve a successful holiday season 2013 rollout of Battlefield 4; (c)
the performance of the Electronic Arts unit publishing Battlefield 4 was
so deficient that all other projects that unit was involved in had to be
put on hold to permit it to focus its efforts on fixing Battlefield 4;
and (d) as a result, Electronic Arts was not on track to achieve the
financial results it had told the market it was on track to achieve
during the Class Period.
Plaintiff seeks to recover damages on behalf of all purchasers of
Electronic Arts common stock during the Class Period (the "Class"). The
plaintiff is represented by Robbins Geller, which has expertise in
prosecuting investor class actions and extensive experience in actions
involving financial fraud.
Robbins Geller represents U.S. and international institutional investors
in contingency-based securities and corporate litigation. With nearly
200 lawyers in ten offices, the firm represents hundreds of public and
multi-employer pension funds with combined assets under management in
excess of $2 trillion. The firm has obtained many of the largest
recoveries and has been ranked number one in the number of shareholder
class action recoveries in MSCI's Top SCAS 50 every year since
2003. Please visit http://www.rgrdlaw.com
for more information.
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