Shareholders are suing Hasbro, alleging the company has devalued Magic: The Gathering cards by overproducing sets and, notably, concealed the real reason its $999 30th Anniversary Edition was pulled from sale less than an hour after launch.
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The suit claims a “parachute strategy” of overprinting and a misleading sales tactic surrounding a controversial anniversary product.
- The lawsuit, filed in Rhode Island, names CEO Christian Cocks and other directors.
- Plaintiffs allege breaches of fiduciary duty, unjust enrichment, and mismanagement.
- A key claim is that Hasbro used Magic: The Gathering to cover financial shortfalls in other areas of the business.
- The suit alleges the company falsely claimed the $999 anniversary set sold out when it was actually being pulled due to poor reception.
A new lawsuit filed by shareholders Joseph Crocono and Ultan McGlone accuses Hasbro of mismanaging the popular trading card game, Magic: The Gathering, through excessive printing and deceptive practices. The complaint, filed this week in Rhode Island, alleges that Hasbro leadership prioritized short-term gains over the long-term health of the franchise.
The “Parachute Strategy” and Increased Production
Plaintiffs claim that under CEO Christian Cocks’ leadership, Hasbro has dramatically increased the number of Magic: The Gathering sets released each year, diminishing the value of existing cards. This isn’t news to dedicated players, who’ve noticed a significant uptick in releases. In 2020, Wizards of the Coast released more sets than ever before, doubling the revenue of that segment of Hasbro between 2018 and 2021. By 2022, Hasbro released over five times as many Magic sets as it had in 2016.
The lawsuit details what it calls the “Parachute Strategy,” where new Magic sets were allegedly released to offset financial shortfalls elsewhere within Hasbro. Initially, these “parachute” sets were largely reprints with low production costs, like “Masters” sets. However, the strategy expanded to include collaborations and sets like Commander Legends: Battle for Baldur’s Gate. According to the lawsuit, these “parachute” sets accounted for 46% of all Magic releases in 2022.
The Controversial 30th Anniversary Set
The lawsuit also focuses on the widely criticized $999 30th Anniversary Edition. The set contained four booster packs of non-tournament legal reprints, including cards Wizards of the Coast had previously vowed never to reprint, such as the Black Lotus. The plaintiffs allege that Hasbro management deliberately created the impression of high demand for the set by “pausing” sales and claiming it had sold out, despite having a significant amount of unsold inventory.
According to testimony included in the complaint, management planned to halt sales if the set didn’t meet expectations. Following the negative reaction to the announcement, the company posted on X (formerly Twitter) that the “sale has concluded, and the product is currently unavailable for purchase,” implying a sell-out. The lawsuit accuses the company of falsely claiming the product was “out of stock.”
The suit further alleges that unsold sets were subsequently discarded, with photographs surfacing online showing Magic Anniversary Sets dropped off at a Texas landfill alongside older products.
The plaintiffs are seeking a ruling that they adequately represent Hasbro shareholders and are requesting damages from the individual defendants, as well as increased shareholder power on the company’s board.
Hasbro has been contacted for comment.
This isn’t the first time Hasbro’s handling of Magic: The Gathering has drawn criticism from investors. A 2022 analysis by Bank of America highlighted concerns about overprinting and its potential impact on the franchise’s long-term value.
Despite the controversy, the latest set, Lorwyn Eclipsed, has reportedly sold well, with some rare cards, including a Showcase Fracture Foil version of Bloom Tender, fetching over $600.
