© ROOT-NATION.com - Use of content is permitted with a backlink.
A lawsuit has been filed against Hasbro, the owner of the cult collectible game Magic: The Gathering, is facing a lawsuit accusing its management of gross mismanagement, breach of fiduciary duty, and unjust enrichment due to the excessive production of playing cards. The plaintiffs allege that the company deliberately oversaturated the market with products, which damaged both the brand and investors.
The defendants are Hasbro CEO Chris Cox, a number of current and former board members, and former Wizards of the Coast president Cynthia Williams. The plaintiffs are shareholders Joseph Croconeau and Ultan McGlone, who have owned Hasbro shares for several years. They claim that the public statements made by the company’s management during shareholder calls between 2021 and 2023 were “materially false and misleading… [and] caused the company to be materially harmed by forcing it to repurchase its own shares at artificially inflated prices.”
In the 76-page document, the authors of the lawsuit emphasize the exceptional popularity of Magic: The Gathering among collectors, noting that individual cards can cost thousands of dollars on the secondary market. As an additional argument, the case uses a 2022 report by Bank of America, which explicitly warned that the “oversupply” of Magic cards temporarily supports Hasbro’s financial performance, but at the same time destroys the long-term value of the brand. It was during this period, between April and July 2022, that the company repurchased 1.4 million of its own shares for $125 million, overpaying about $55.9 million, according to the plaintiffs.
Read also: GamePro Asgard Drakkar/Ragnar/Yord Wireless Keyboards Review: Notable Collaboration with Keychron
Among the players and fans of Magic: The Gathering players and fans have been discussing Hasbro’s aggressive strategy of launching new products for several years now. It became especially noticeable after the launch of large-scale crossovers Universes Beyond and Secret Lair line, where the game cooperates with major media brands. During financial reports, Hasbro openly boasted of the commercial success of these releases. In particular, in 2025, the company separately noted the Final Fantasy set within Universes Beyond as one of the key revenue drivers.
At the same time, according to the lawsuit, excessive card printing, especially in the period from September to October 2023, could be used to mask problems in other areas of Hasbro’s business. The plaintiffs’ logic is that reissuing or creating new cards is much cheaper than developing new products, and this allowed them to quickly close financial gaps.
The lawsuit was filed on the eve of Hasbro’s next investor call scheduled for February 10. During this call, the company is expected to announce the financial results of Magic: The Gathering financial results for the previous fiscal year and quarter.
Read also:
- Palworld to Launch Official Trading Card Game as Exclusive Gaming Experiences Go Mainstream
- Ukrainian Fight Drone Simulator trainer released on Steam (+ developer comments for RN)