Hasbro is facing a new legal challenge as multiple shareholders have filed a lawsuit accusing the company of mismanaging Magic: The Gathering (MTG), one of its most profitable and long-running franchises.
The case, led by shareholders Joseph Crocono and Ultan McGlone, alleges that Hasbro’s leadership engaged in poor decision-making that ultimately damaged the brand’s long-term value, particularly for collectors and long-time players.
Allegations of Mismanagement
According to the lawsuit, Hasbro is accused of breaching fiduciary duties, wasting corporate assets, and violating the Exchange Act. At the center of the complaint is the claim that the company aggressively oversaturated the MTG market.
Shareholders argue that the constant release of new products has diluted the value of existing cards and undermined consumer confidence. The suit points to an expanding schedule of full expansions, crossover sets, and frequent Secret Lair drops as evidence of an unsustainable strategy.
Product Flooding and Collector Impact
The plaintiffs claim that MTG has shifted away from a carefully managed collectible ecosystem toward high-volume monetization. They argue that the rapid release cadence has harmed secondary market value and weakened the perception of rarity that historically defined the brand.
The lawsuit further claims that Hasbro relied on MTG as a financial fallback to offset underperformance in other divisions, effectively using the franchise as a “parachute” to stabilize company revenue.
Shareholders allege that parachute-style releases accounted for more than 40% of MTG products in 2022, citing examples such as Secret Lair drops and crossover content.
The 30th Anniversary Edition Controversy
One of the most heavily criticized releases referenced in the lawsuit is the Magic: The Gathering 30th Anniversary Edition.
The plaintiffs allege that:
- The $1,000 price point alienated players and collectors
- Sales were halted within an hour, creating the appearance of a forced sell-out
- Unsold inventory allegedly ended up discarded in Texas landfills
The inclusion of reprints of historically restricted cards, including Black Lotus, is also cited as a key factor in eroding collector trust.
Hasbro’s Response and Ongoing Strategy
Hasbro has denied any wrongdoing, stating that all MTG releases aligned with its long-term strategic plan. The company maintains that its increased production schedule reflects strong demand and evolving player engagement.
Currently, MTG operates on a significantly accelerated cadence:
- Six Standard-legal sets per year
- Plans for seven full expansions in 2026
- A crowded roadmap featuring sets such as Lorwyn Eclipsed, Secrets of Strixhaven, Reality Fracture, and multiple crossover releases
This high-output approach is now central to the legal dispute.
Why This Lawsuit Matters
The case highlights a growing tension between business growth and collector confidence. While frequent releases can drive short-term revenue, shareholders argue that long-term brand health depends on scarcity, stability, and trust.
If the lawsuit progresses, it could become a defining legal test of whether aggressive live-service style monetization is compatible with a collectible card game built on long-term value.
For the MTG community, the outcome may influence how future products are paced, priced, and positioned in an era of constant releases.
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