Earlier this month, developer Bungie split from their major publisher Activision Blizzard. This news took the gaming industry by storm, but it seems like the drama isn’t over yet. Today, two law firms have announced Class Action Lawsuits against Activision Blizzard.
Rosen Law Firm and The Schall Law Firm both filed lawsuits claiming that Activision misled investors prior to the news of the split being officially announced. A press release from Schall Law Firm details:
According to the Complaint, the Company made false and misleading statements to the market. Activision Blizzard’s termination of its partnership with Bungie Inc., which would give full publishing rights for the Destiny gaming franchise to Bungie, was about to occur. The end of the agreement between the two Companies was likely to have a considerable negative impact on Activision Blizzard’s revenues moving forward. Based on these facts, the Company’s public statements throughout the class period were false and materially misleading. When the market learned the truth about Activision Blizzard (ATVI), investors suffered damages.
Similarly, a press release from Rosen claimed that the split with Bungie was “imminent,” and the publisher would have known that the separation would result in a “significant negative impact” on investors. Because they did not share this information with investors beforehand, Activision Blizzard is being accused of offering false and misleading information to investors.
WCCF Tech reports, “these were not the first law firms to announce class action lawsuits for the very same complaint. Federman & Sherwood, Pomerantz LLP, Levi & Korsinsky, LLP, and Faruqi & Faruqi, LLP already did the same between last week and this week.” Investors who purchased shares in Activision Blizzard between August 2nd, 2018 and January 10th, 2019 has been encouraged to contact the law firms before March 19, 2019.
As this story continues to unfold, stay tuned to Mammoth Gamers for additional information!