Fourth law firm suing CD Projekt S.A. for securities fraud

CD Projekt S.A. is now getting sued by the fourth U.S.-based law firm for securities fraud, investors invited to join case.

@DeekeTweak
Published Wed, Jan 6 2021 5:48 PM CST   |   Updated Tue, Feb 2 2021 6:33 AM CST

After weeks of investigating, New York-based law firm Wolf Haldenstein Adler Freeman & Herz has filed a class-action lawsuit against CD Projekt S.A. for possible securities fraud.

Fourth law firm suing CD Projekt S.A. for securities fraud 53 | TweakTown.com

Today U.S. legal team Wolf Haldenstein Adler Freeman & Herz announced they have filed a lawsuit against CD Projekt over the Cyberpunk 2077 controversy. Four law firms are now suing CD Projekt S.A., including:

  1. Schall Law
  2. Rosen Law
  3. Bragar Eagel & Squire
  4. Wolf Haldenstein Adler Freeman & Herz

All of these law firms were previously investigating CD Projekt for securities fraud.

NEW YORK, Jan. 05, 2021 (GLOBE NEWSWIRE) -- Wolf Haldenstein Adler Freeman & Herz LLP announces that a federal securities class action lawsuit has been filed on behalf of all purchasers of the U.S. listed securities of CD Projekt S.A. (OTC: OTGLY, OTGLF) ("CD Projekt" or the "Company") who acquired their shares between January 16, 2020 and December 17, 2020, inclusive (the "Class Period").

All investors who purchased the American Depositary Receipts ("ADR's") of CD Projekt SA and incurred losses are urged to contact the firm immediately at classmember@whafh.com or (800) 575-0735 or (212) 545-4774. You may obtain additional information concerning the action or join the case on our website, www.whafh.com.

The class action suits all make the same claim: CD Projekt S.A. is responsible for creating a deceptive market environment that caused shareholders to lose money. CD Projekt didn't disclose Cyberpunk 2077's dismal performance on PS4 and Xbox One, and controversy ensued. This led to mass refunds on the PlayStation Store and Xbox LIVE marketplace, as well as significant detrimental impact on CD Projekt RED's reputation.

Share prices slid and wiped out $641 million from CD Projekt's market valuation in a week period (CDP shares currently sit at $18.32, a 33% drop since CP2077 has released).

The lawsuits allege CD Projekt may have technically committed securities fraud by withholding the game's performance. The company actually admitted it purposely hid Cyberpunk 2077 running on PS4 and Xbox One because it wasn't finished, and that it neglected these versions of the game.

Here's a catalog of relevant coverage on this legal issue:

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Derek is absorbed with the intersection of technology and gaming, and is always looking forward to new advancements. With over six years in games journalism under his belt, Derek aims to further engage the gaming sector while taking a peek under the tech that powers it. He hopes to one day explore the stars in No Man's Sky with the magic of VR.

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