Magic: The Gathering – Hasbro Faces Federal Lawsuit Over Market Overprinting
The high-stakes game of Magic: The Gathering (MTG) has moved from the tabletop to the federal courtroom. Hasbro is currently facing a massive 76-page shareholder lawsuit filed in January 2026, alleging that the company’s leadership “knowingly overprinted” MTG products to mask financial failures in its other divisions.
A 76-page federal lawsuit filed in Rhode Island has put CEO Chris Cocks and other top executives in the crosshairs of a massive shareholder revolt.
The allegation, says GoLocalProv, is a systematic “overprinting” of Magic: The Gathering cards designed to deceive investors and mask deep financial rot within the company’s other divisions. For fans who have felt the “product fatigue” of the last few years, the legal system is finally putting a price tag on that exhaustion.
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Magic: The Gathering: The “Parachute Strategy” Exposed
Led by shareholders Joseph Crocono and Ultan McGlone, the lawsuit pulls back the curtain on what it calls the “Parachute Strategy.” The claim is that Hasbro executives allegedly ordered the emergency “parachuting” of extra MTG sets to “account for revenue shortfalls elsewhere in the company.”
The lawsuit cites a pivotal 2022 Bank of America report, which warned that Hasbro was “destroying the long-term value” of its flagship brand. By flooding the market with “limited” products that were anything but, Hasbro allegedly burned through years of collector goodwill in just a few quarters.
Plaintiffs argue that the “Secret Lair” drops and “Universes Beyond” crossovers aren’t just creative expansions, but tools for market oversaturation.
By doubling the number of products released between 2021 and 2023, Hasbro allegedly flooded the market. This move reportedly devalued existing collections and crushed the confidence of local game stores.
MTG vs $55 Million Overpayment: The Buyback Scandal
The most concrete financial blow in the filing involves a series of stock buybacks. Between April and July 2022, Hasbro spent roughly $125 million to repurchase 1.4 million of its own shares. The lawsuit contends these shares were bought at “artificially inflated prices” maintained by the deceptive Magic revenue numbers.
According to the report, the plaintiffs allege that Hasbro overpaid for its own stock by $55.9 million. This isn’t just a “fan complaint” about too many cards, but a legal accusation of “waste of corporate assets” and “breach of fiduciary duty” that could result in massive personal liability for the named executives.
The most explosive claim involves the infamous 30th Anniversary Edition. Shareholders allege Hasbro faked “out of stock” messages for the $999 product to create artificial FOMO. Internal “war room” reports suggest the set actually underperformed, leading to rumors of unsold inventory ending up in landfills.
This legal clash contrasts Hasbro’s drive for short-term profit against the scarcity model that sustained MTG for 30 years. Bank of America analysts previously warned that Hasbro was “killing its golden goose,” and now investors are demanding damages for an alleged $55.9 million loss in stock value.
Is Magic: The Gathering Still Worth Collecting?
For the first time in the game’s 30-year history, the “scarcity” of Magic is being litigated in a federal court. If the lawsuit succeeds, it could force a radical shift in how Wizards of the Coast operates, potentially returning the game to a slower, more sustainable release cadence.
Do you think Hasbro’s “Parachute Strategy” has permanently damaged the value of your collection?
Fueled by a passion for gaming and the ever-evolving world of gaming news, Daniel loves connecting with seasoned and new players to bring games to life on the page, exploring their narratives and gaming trends. A self-published fiction and fantasy author, Daniel has nearly 20 years of experience writing gaming news and a love for storytelling that drives his enthusiasm to deliver breaking news, in-depth analysis, and industry innovations. You will find him in-game as "Windfell."
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