Who is being sued in the Magic: The Gathering lawsuit?

The lawsuit targets Hasbro executives, including CEO Chris Cocks, several board members, and the former president of Wizards of the Coast.

What are the main accusations against Hasbro executives?

Executives are accused of gross mismanagement, breaching fiduciary duties, and unjust enrichment due to the alleged overproduction of Magic: The Gathering cards.

What impact did the overproduction of Magic cards have according to the lawsuit?

The lawsuit claims that overproducing cards harmed the long-term value of the Magic: The Gathering brand and allowed the company to repurchase its own shares at artificially inflated prices.

Home / Business and Economy / Lawsuit claims Hasbro's card glut harmed brand value

Lawsuit claims Hasbro's card glut harmed brand value

25 Jan

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Summary

Executives are accused of gross mismanagement and unjust enrichment.
The company allegedly overproduced cards, harming the brand's long-term value.
A 2022 report warned of an 'oversupply' impacting Hasbro's financial results.

Hasbro executives, including CEO Chris Cocks and former Wizards of the Coast president Cynthia Williams, are facing a lawsuit over alleged mismanagement and unjust enrichment related to Magic: The Gathering. Filed in Rhode Island on January 21, the suit claims that executives made misleading statements between 2021 and 2023, causing harm by repurchasing company shares at inflated prices.

The 76-page complaint highlights the significant secondary market value of Magic cards. A Bank of America report from 2022 cautioned that an "oversupply" of these cards, while boosting recent results, was damaging the brand's future value. This overproduction is believed to have helped Hasbro cover business shortfalls.

Players have observed Hasbro's increased product releases, including popular Universes Beyond crossovers. The company has acknowledged the revenue generated by sets like the Final Fantasy crossover. The lawsuit surfaces shortly before Hasbro's February 10 earnings call.