Yesterday I posted an article about the new lawsuit being levelled against EA and now some more juicy details have emerged. While I’m definitely no lawyer I have to say this is really starting to look suspicious.
You can browse through the official lawsuit her,e but the part that is most suspicious has been highlighted by Gamespot – and here it is. This image showcases what shares were sold by leading EA executives a few weeks prior to the release of Battlefield 4.
In summary a group of 5 EA employees dumped over $4.8 million worth of stock over a period of just three weeks. Now the lawyers are claiming that this was done because these guys knew that Battlefield 4 had some serious issues and were dumping stock before the stock price started dropping.
But if we take a little look back then this case starts to look a little weak. At the time of writing the EA share price is sitting at $23.44 which is only $3 less than when the executives sold their stock and $3 is a lot when you are talking huge sales…but what if we look further back?
Back in January this year the stock price was sitting at a less than exciting $14.88 and back in July last year it was even worse at $11.41. So as smart business people is it really suspicious that they sold a lot of stock while the price was higher than it has ever been in the last 5 years.
To me, though this doesn’t show anything other than a couple of people cashing out at the top of the ride and nothing to do with the problems that Battlefield 4 is currently experiencing.
Last Updated: December 20, 2013
Lego Witcher of the Squirrels
December 20, 2013 at 08:37
I don’t think it’s suspicious, it was just bad timing on their part lol.
I would have sold at the same time if I had in the region of 50000 or more shares in EA… it’s just good business… and setting yourself up for a good christmas season 😛