Electronic Arts Faces Securities Investigation Amid Stock Decline

2025-03-31 companies

Redwood City, Sunday, 30 March 2025.
Rosen Law Firm is investigating potential securities claims against Electronic Arts after a 16.3% stock drop, citing allegedly misleading business information. Investors experienced significant losses this year.

Significant Financial Impact

The investigation centers on events from January 2025, when Electronic Arts Inc. (NASDAQ: EA) dramatically shifted its financial outlook. On January 22, 2025, EA announced a projected mid-single-digit decline in live services net bookings, with Global Football accounting for the majority of the change—a stark contrast to their initial guidance which had anticipated mid-single-digit growth [1][2]. This unexpected revision triggered a substantial market reaction, with EA’s stock plummeting 16.3% on January 23, 2025 [3].

Legal Response and Investor Protection

The Rosen Law Firm, recognized for its expertise in securities litigation, has initiated an investigation into whether EA issued materially misleading business information to investors [4]. The firm’s track record lends weight to this investigation, having secured over $438 million for investors in 2019 and achieving the number one ranking by ISS Securities Class Action Services for securities class action settlements in 2017 [5].

Company Background and Impact

Electronic Arts, founded in 1982 and headquartered in Redwood City, California, is a global leader in digital interactive entertainment [6]. The company develops and publishes games across various genres, including sports, racing, first-person shooter, and simulation games under popular brands such as Battlefield, The Sims, and Apex Legends [7]. This investigation comes at a crucial time for EA, which reported revenue of $7.56 billion in 2023, marking a 1.83% increase from the previous year [8].

Next Steps for Affected Investors

As of March 30, 2025, affected investors are encouraged to join the prospective class action. The Rosen Law Firm has established a contingency fee arrangement, meaning investors may be entitled to compensation without upfront costs [9]. Interested shareholders can submit their information through the firm’s online portal or contact Phillip Kim, Esq. directly at 866-767-3653 [10].

Sources

Electronic Arts securities claims