Levi & Korsinsky Investigates Electronic Arts Inc. for Potential Securities Law Violations
New York, NY – February 25, 2025
Levi & Korsinsky, a leading securities law firm, notifies investors that it has commenced an investigation of Electronic Arts Inc. (EA) regarding potential securities laws violations. The investigation focuses on whether the company and its executives violated federal securities laws in connection with certain statements made between the time of EA’s Q2 FY25 earnings release on October 27, 2024, and the pre-announcement of Q3 FY25 results on January 22, 2025.
Background:
On October 27, 2024, Electronic Arts Inc. reported its financial results for the second quarter of fiscal year 2025. During the earnings call, management provided guidance for the third quarter, projecting revenue growth of approximately 7% year-over-year. EA also announced the release of several highly anticipated games, including “Battlefield 6” and “FIFA 26,” which were expected to contribute significantly to the company’s growth.
Pre-Announcement and Guide-Down:
However, on January 22, 2025, EA issued a press release pre-announcing their preliminary Q3 FY25 results and announcing a guide-down from the company’s prior expectations. The company now anticipates revenue growth of approximately 2% for the third quarter, citing lower-than-expected sales of “Battlefield 6” and “FIFA 26” as the primary reason for the revision.
Impact on Investors:
Following the pre-announcement and guide-down, EA’s stock price dropped significantly, leading to substantial losses for investors. Those who purchased EA shares based on the company’s optimistic guidance during the Q2 FY25 earnings call may be able to recover their losses through a securities class action lawsuit. Levi & Korsinsky is encouraging investors who purchased EA securities between October 27, 2024, and January 21, 2025, to contact the firm.
Impact on the World:
The investigation and potential lawsuit against Electronic Arts Inc. may send a strong message to the gaming industry and the business world as a whole. The case could set a precedent for holding companies accountable for providing inaccurate or misleading financial guidance, potentially leading to increased transparency and more accurate reporting practices.
Conclusion:
Levi & Korsinsky’s investigation into Electronic Arts Inc. highlights the importance of accurate financial reporting and the potential consequences of providing misleading guidance to investors. If you purchased EA securities between October 27, 2024, and January 21, 2025, and believe that you have suffered losses as a result of the company’s misrepresentations, please contact Levi & Korsinsky to discuss your legal options.
- Levi & Korsinsky commences an investigation of Electronic Arts Inc. for potential securities law violations.
- The investigation focuses on possible misrepresentations made between October 2024 and January 2025.
- EA’s pre-announcement and guide-down led to significant stock price drops and investor losses.
- The case could set a precedent for increased transparency and accurate reporting in the gaming industry and beyond.
