Slashdot Mirror
Judge Says EA Battlefield 4 Execs Engaged In "Puffery," Not Fraud
DemonOnIce writes with a story, as reported by Ars Technica, that a federal judge in San Francisco has dismissed a proposed securities fraud class action lawsuit connected to Battlefield 4's bungled rollout. From the report:
EA and several top executives were sued in December and were accused of duping investors with their public statements and concealing issues with the first-person shooter game. The suit claimed executives were painting too rosy of a picture surrounding what ultimately would be Battlefield 4's disastrous debut on various gaming consoles beginning last October, including the next-generation Xbox One. But US District Judge Susan Illston of San Francisco said their comments about EA and the first-person shooter game were essentially protected corporate speak. "The Court agrees with defendants that all of the purported misstatements are inactionable statements of opinion, corporate optimism, or puffery," Illston ruled Monday.
The United States Federal Trade Commission (FTC) defined puffery as a "term frequently used to denote the exaggerations reasonably to be expected of a seller as to the degree of quality of his product, the truth or falsity of which cannot be precisely determined."
The FTC stated in 1984 that puffery does not warrant enforcement action by the Commission. In its FTC Policy Statement on Deception, the Commission stated: "The Commission generally will not pursue cases involving obviously exaggerated or puffing representations, i.e., those that the ordinary consumers do not take seriously." e.g., "The Finest Fried Chicken in the World."
Source
In other words, caveat emptor.
Chuuch. Preach. Tabernacle.
You know... I was downtown, selling some fine imported watches to passers by, and a police officer did not find my excuse of "Puffery" nearly as understandable as this judge seems to. Apparently Puffery isn't not allowed at $100, but is at $100million. Interesting indeed. I need to raise my price point!