Hasbro Faces Shareholder Lawsuit Over MTG Oversupply and Declining Card Values

Hasbro, the parent company of Wizards of the Coast, is facing a major shareholder lawsuit over its handling of Magic: The Gathering (MTG) card production. On January 8, 2026, shareholders filed a 76-page complaint in Rhode Island, alleging that Hasbro executives deliberately oversupplied MTG cards to boost short-term profits at the expense of the game’s ecosystem and long-term card value.

The lawsuit details a strategy referred to as the Parachute Strategy, where Magic cards are used as a financial safety net. Shareholders claim that whenever other Hasbro divisions, such as toys, underperform, the company immediately increases the release of new MTG sets to offset losses. This practice, they argue, has created market oversaturation, hurting collectors and local game stores as card prices plummet.

The complaint also cites a 2022 Bank of America report warning that Hasbro risked destroying the scarcity and perceived value of MTG cards. Despite these warnings, executives reportedly assured investors that marketing plans were carefully managed, while in reality, production of card sets increased fivefold compared to previous years.

One of the most controversial points in the lawsuit involves the 30th Anniversary Set, priced at $999. Shareholders claim Hasbro artificially created scarcity by making it appear that the product sold out quickly, even though large quantities remained unsold and were quietly removed from sale. This tactic allegedly misled consumers and created a false sense of demand.

Shareholders further argue that these actions inflated Hasbro’s stock price, resulting in the company spending $55.9 million on share buybacks at artificially high prices. The case has therefore escalated beyond complaints from gamers about too many cards, raising concerns about corporate mismanagement and investor trust in the public market.

Hasbro has issued a brief statement denying the allegations and confirmed that it intends to defend itself in court. For players and collectors, this lawsuit highlights the importance of brand trust and long-term value over short-term financial gains, emphasizing that the reputation of a 30-year legacy is not easily replaced by quarterly profits.

Source: Dexerto