Levi & Korsinsky Investigates Electronic Arts Inc. for Potential Securities Law Violations
New York, NY – February 21, 2025
Levi & Korsinsky, a leading securities law firm, notifies investors that it has commenced an investigation of Electronic Arts Inc. (EA) for potential violations of federal securities laws. The investigation focuses on whether the company and its executives violated securities laws by making materially false and misleading statements regarding EA’s business, financial condition, and prospects.
Background
On January 22, 2025, EA issued a press release pre-announcing its preliminary Q3 FY25 results and announcing a significant guide-down from the company’s prior expectations. The press release stated that EA now expected GAAP revenue to be approximately $1.25 billion, compared to the previously announced range of $1.44 billion to $1.48 billion. The company also announced that it expected GAAP net loss per share to be approximately $0.37, compared to the previously announced range of $0.11 to $0.15.
Impact on Individual Investors
The unexpected financial results announcement caused a significant drop in EA’s stock price, leading to potential losses for investors. If the investigation uncovers evidence of securities law violations, EA and its executives could face various consequences, including fines, damages, and even criminal charges.
Impact on the World
EA’s financial performance and potential securities law violations could have ripple effects on the broader gaming industry and the tech sector as a whole. If the investigation reveals that EA misled investors, it could lead to increased scrutiny of other tech companies and potentially impact investor confidence in the sector. Additionally, if the investigation results in significant fines or penalties for EA, it could negatively impact the company’s financial position and future prospects.
Conclusion
Levi & Korsinsky’s investigation of Electronic Arts Inc. for potential securities law violations is an important development for investors in the gaming industry and beyond. The potential consequences of the investigation, including fines, damages, and even criminal charges, could have significant impacts on both EA and the broader tech sector. As the investigation unfolds, investors should stay informed about the latest developments and consider seeking legal advice if they have any concerns about their investments.
- Levi & Korsinsky commences investigation of Electronic Arts Inc. for potential securities law violations.
- EA pre-announced Q3 FY25 results with a significant guide-down from prior expectations.
- The unexpected financial results announcement caused a significant drop in EA’s stock price.
- Potential consequences of the investigation include fines, damages, and criminal charges.
- The investigation could have ripple effects on the gaming industry and the tech sector as a whole.
