Corporate corruption law firm Holzer Holzer & Fistel has launched an investigation into Electronic Arts with the hope of determining whether the massive American games publisher and/or its officers complied with federal securities laws surrounding Battlefield 4.
Specifically, the investigation will focus on examining the statements EA made between July 24, 2013 and December 4, 2013 regarding the development and sales performance for Battlefield 4, as well as the impact the game would have on EA's revenue going forward.
The legal team did not specifically mention which statements made between those dates it is looking into. These could conceivably include the company's Q1 2014 conference call in July or its Q2 2014 conference call in October. What's more, executives like CEO Andrew Wilson and CFO Blake Jorgensen gave a presentation at the Credit Suisse 2013 Annual Technology Conference just last week.
EA has yet to disclose sales information regarding Battlefield 4, which is now available on Xbox 360, Xbox One, PlayStation 3, PlayStation 4, and PC, but early signs suggest that sales are down significantly compared to 2011's Battlefield 3. In the UK, first-week sales of Battlefield 4 were 69 percent worse than week-one sales of Battlefield 3.
Greater clarity on the sales performance of Battlefield 4 is expected tomorrow, when the NPD Group releases sales data for November 2013.
Holzer Holzer & Fistel urged people who purchased EA common stock between those dates, and suffered a loss on their investment, to contact the law firm to discuss their legal rights. The Georgia-based law firm is the same practice that launched an investigation into THQ in June 2012 over its failed uDraw tablets.
We reached out to the Holzer Holzer & Fistel lawyers conducting the investigation, but no one was available to discuss the case. We left a message with one of the lawyers and will update this story with additional information should we get a response.
We also asked EA if they had any comment on the investigation, but have yet to get a response back from their corporate communications department.
Holzer Holzer & Fistel also have open investigations of major companies like Ruby Tuesday, Blackberry, Lumber Liquidators, J.C. Penny, and Urban Outfitters.