Last year, Bungie and Activision both surprised the gaming world when they announced that the two companies were splitting, having Bungie once again assuming direct control over the Destiny franchise. While many fans of the series celebrated this newfound move that could mean big things for the series, it appears that not everyone was thrilled with the loss of the IP and now Activision is facing several class action lawsuits over the decision.
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A few shareholders were shocked by the seemingly sudden move and are reportedly looking at possible legal action towards the company over “misleading information.” Kuznicki Law PLLC is the firm taking on the case on behalf of the responding investors, particularly those that purchased shares from Activision between August 2, 2018 – January 10, 2019.
According to the lawfirm, Activision did not reveal to the new investors that a split was being discussed and given that Activision’s stock has taken a tremendous downturn in light of the split and a recent mass layoff, some shareholders are less than pleased.
The lawfirm publicly revealed the legal intent over on their website with an Activision Blizzard, Inc Loss Submission form stating:
“The filed complaint alleges that defendants made materially false and/or misleading statements and/or failed to disclose that: (i) the termination of Activision Blizzard and Bungie’s partnership, giving Bungie full publishing rights and responsibilities for the Destiny franchise, was imminent; (ii) the termination of the two companies’ relationship would foreseeably have a significant negative impact on Activision Blizzard’s revenues; and (iii) as a result, Activision Blizzard’s public statements were materially false and misleading at all relevant times.”
The statement continues, adding “If you wish to choose counsel to represent you and the class, you must apply to be appointed lead plaintiff and be selected by the Court. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement for the class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in the respective securities during the class periods. Members of the class will be represented by the lead plaintiff and counsel chosen by the lead plaintiff. No class has yet been certified in the above action. Appointment as Lead Plaintiff is not required to partake in any recovery.”
The deadline offered shuts down on March 19 of this year. The full legal statement can be found here for those interested in learning more.
