Tuesday, March 29, 2005

EA hit with class action suit

Electronic Arts found out that shareholders do not have such patience as their game development workers. I took this quote from PR Newswire:

“A class action lawsuit was filed in the United States District Court for the Northern District of California on behalf of all securities purchasers of Electronic Arts Inc. between January 25, and March 21, 2005, inclusive.”

The complaint goes on and lists several points of information that should have been made into public. They claim that management of EA was misguiding investors by giving optimistic estimates.

To my opinion, Electronic Arts will not have any troubles winning this case. Management did not bail out by selling large chunks of shares, seems to me that they just simply made a mistake. A whole different thing is the publicity value for the company that is organizing this class action suit.
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