Multiple shareholder law-firm investigations into potential securities law violations (high) Several shareholder litigation firms initiated investigations into Electronic Arts for possible securities law violations in early 2025. Reported firms and dates include: Block & Leviton (investigating; reported Jan 23, 2025), The Rosen Law Firm (initiated an investigation into potential securities violations; reported Mar 22, 2025), and The Schall Law Firm (announced it is investigating claims on behalf of investors; reported Jan 27, 2025). These investigations indicate potential allegations of misstatements or omissions to investors and may lead to class actions or other securities litigation.. Loot-box controversy (Star Wars Battlefront II) caused regulatory scrutiny and material sales impact (high) EA's implementation of loot boxes/pay-to-win mechanics in Star Wars Battlefront II (2017) drew major consumer backlash and regulatory scrutiny. Disney required disabling of the system prior to full release. EA reported missing Battlefront II targeted sales by 10% and missed fiscal targets after the loot-box/progression system was taken offline for several months (Blake Jorgensen commentary). Regulatory actions followed: Belgium and the Netherlands issued rulings finding some loot-box systems may be unregulated gambling; EA disabled the ability for Belgian players to purchase loot boxes in FIFA by January 2019 to comply. The episode involved severe reputational damage (highly downvoted Reddit post) and measurable financial impact.. Past employee overtime class-action settlements for unpaid overtime (medium) Class action lawsuits filed by EA employees over unpaid overtime were settled in the mid-2000s: one settlement for video game artists settled for US$15.6 million (2006), and a separate programmers' suit settled for US$14.9 million (2006). As part of settlements, EA reclassified several lower-level developers to hourly pay to qualify for overtime but removed stock option eligibility. These prior settlements reflect historical compliance failures with wage/overtime rules.. Antitrust and player likeness litigation with substantial settlements and appeals (high) EA faced antitrust and player-likeness litigation regarding exclusive sports licensing and use of former college/NCAA players' likenesses. Key items: appeals court ruled against EA in an NFL players likeness case (reported Jan 2015), Supreme Court declined further review (2016), EA paid $600,000 to Jim Brown (June 2016), and EA settled class action lawsuits brought by former NCAA players over unauthorized use of likenesses with a reported settlement around $40 million (Sept 2013). These suits include antitrust and publicity/rights claims and resulted in multi-million dollar payouts and legal precedent against EA.. Ongoing workplace culture allegations and individual lawsuits alleging harassment and discrimination (medium) Multiple reports and lawsuits allege toxic workplace culture at EA, including claims of sexism, harassment, bullying, discrimination and retaliation. Notable: former employee Amanda K. Kofsky filed a lawsuit in 2019 alleging a "culture of bullying, harassment, discrimination, and retaliation." Other employees and public accounts (2018 onward) describe harassment and underpayment issues. These allegations have led to internal and public scrutiny and organizational responses but indicate ongoing reputational and compliance risk related to employment practices.. History of studio acquisitions followed by closures and loss of talent/IP (medium) EA has a documented history of acquiring development studios and later shuttering them or markedly changing their operations, with cited examples including Origin Systems (acquired 1992; later shuttered), Bullfrog, Westwood, Maxis, Pandemic, and the closure of Visceral Games in 2017. This pattern has repeatedly drawn criticism for destroying studio culture and creative talent and has been cited as harming the company's reputation and long-term creative pipeline.. Consumer backlash: 'Worst Company in America' awards and high public dislike rankings (medium) EA was voted 'Worst Company in America' by Consumerist in both 2012 and 2013, becoming the first company to win consecutively. Separately, USA Today ranked EA among the country's most-hated companies (5th most hated in 2018). These public sentiment measures reflect sustained consumer dissatisfaction tied to product controversies (e.g., Mass Effect 3 ending, SimCity launch, microtransactions), which can influence sales, brand value, and regulatory scrutiny.. Material uncertainty noted in tax provision and related judgments (medium) EA's public filings note that 'significant judgment is required in determining our worldwide income tax provision, tax assets, and accruals for other taxes, and the ultimate tax determination is ...' (SEC/annual report language referenced in the research, dated Mar 31, 2023). The disclosure indicates tax-position uncertainty that could result in material adjustments depending on audit outcomes or changing tax interpretations.