Judge says publisher’s optimism did not mislead investors
The lawsuit over Battlefield 4‘s disastrous launch was dealt a serious blow this week. On Monday, a federal judge ruled against shareholders who claim Electronic Arts mislead investors with regards to the readiness of the first-person shooter.
US District CourtJudge Susan Illston found the statements in question didn’t amount to much more than “puffery” and “corporate optimism” on EA’s part. Furthermore, she added “the complaint fails to adequately allege falsity and scienter for reasons articulated by defendants.”
Though the suit alleges investors were deceived by EA’s tall tales, the publisher notes the majority of its misstatements were made after lead plaintiffs Ryan Kelly and Louis Mastro had already purchased shares.
As such, Kelly and Mastro cannot pursue securities fraud claims based on comments made after October 16, 2013. However, the court will allow the case to proceed, should new lead plaintiffs come forward and resubmit an amended complaint by November 3.
EA Games’ ‘Puffery’ Not Fraud, Judge Finds [Courthouse News]