There is trouble brewing at Hasbro, as its own investors have now sued the managers of Magic: The Gathering!
From the outside, Magic: The Gathering seems to be doing better than ever. People everywhere are talking about the trading cards, playing the board game, or promoting it at pre-release events. But within the Hasbro Group, which also owns Wizards of the Coast, things are boiling over. The management of the US toy manufacturer is accused of various things. These include breach of fiduciary duty, unjust enrichment, gross mismanagement, and abuse of power. This is according to the complaint filed with the United States District Court of Rhode Island in January 2026.
The lawsuit was filed by two long-time shareholders, Joseph Crocono and Ultan McGlone, who are seeking compensation not only for themselves but also on behalf of other investors and the company itself. They accuse Hasbro’s management of gross misconduct with intent to deceive. Specifically, the lawsuit is primarily directed against the company’s current CEO, Chris Cocks. However, former members of the management team and current board members are also included.
Reason for the lawsuit
The reason for the lawsuit is apparently the handling of one of the most famous trading card games ever: Magic: The Gathering. According to the lawsuit, the cards were overproduced, which led to a short-term increase in revenue, but in the long term would destroy the value of the brand. This is also stated in a report by Bank of America, which was published back in 2022. However, the defendants are said to have vehemently denied these allegations and made misleading statements. The problem lies not only in the overproduction of the cards, but also in the financial damage that resulted from it.
In April and July 2022, Hasbro repurchased some of its own shares, which were disproportionately expensive. Hasbro spent a total of €125 million on this, which corresponds to approximately €1.4 million per share. The shareholders’ accusation: the price was artificially inflated by all the different sets and collaborations at the time, costing the company an unnecessary amount of money. The additional costs are said to amount to just under €56 million.
The lawsuit refers to a “carelessly thought-out” strategy regarding the printing of Magic cards. According to the lawsuit, the company “actually printed a quantity of Magic sets that exceeded consumer demand.” In addition, inventory allocation management is said to be problematic, as the market was literally flooded with Magic sets. The 30th anniversary set is also mentioned in the lawsuit. Shortly after the set was released, sales were halted because it was no longer available. This created the impression of high demand. However, the reality is said to be different. Most reactions were “very negative,” which is why Hasbro stopped sales early. Overall, only a fraction of the available quantity is said to have been sold.