EA faces shareholder class action suit over profit warning

US law firm Schnatz & Nobel has filed a class action lawsuit against Electronic Arts in Northern California, alleging that the publishing giant issued false or misleading public statements regarding its financial performance.

The firm, which is seeking class action status for the suit, has filed on behalf of anyone who bought shares in Electronic Arts between January 25th and March 21st - the date on which EA issued a profit warning and announced a major shortfall in its Q4 revenues.

"Specifically, the complaint alleges that certain of Electronic Arts' financial projections were lacking in reasonable basis when they were made," Schatz & Nobel explained in a statement today.

The potential class action suit is the latest headache facing Electronic Arts in relation to its profit warning; although most analysts chose not to downgrade the publisher, it has still seen its share price slide significantly in the wake of the announcement.