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Activision Blizzard in third class-action lawsuit over Bungie?

Published: 15:57, 06 March 2019
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Activision Blizzard

Kuznicki Law is looking for plaintiffs for class-action lawsuit against Activision Blizzard, accusing the publisher of intentionally withholding information that the split with Bungie was imminent and will have significant negative impact.

The complaint was filed in the US District Court for the Central District of California, "on behalf of shareholders of Activision Blizzard, Inc. who purchased shares between August 2, 2018 and January 10, 2019."

According to Kuznicki Law's filing, Activision Blizzard have been providing misleading statements and failing to disclose to shareholders that the split was imminent, even though it was.

Moreover, the company never stated that Bungie's departure, which of course included the rights to Destiny franchise, would have a significant negative impact on Activision Blizzard revenue.

Thirdly, Kuznicki Law argue that "as a result, Activision Blizzard's public statements were materially false and misleading at all relevant times", which, of course, resulted in the legal action against the company.

Unfortunately for Activision Blizzard, this appears to be the third potential class-action lawsuit over what went down with Bungie, and shareholders definitely don't seem one bit happy.

Law firms The Schall and Rosen are also looking to sue, practically arguing the same bottom line - Activision Blizzard knew about Bungie leaving for the longest time, refusing to notify shareholders until the last moment.

It seems that the only bit of good news for Activision Blizzard came when they reported record revenue in 2018, but they quickly ruined that too after they rewarded eight per cent of people who helped them get there with celebratory layoffs.

There's no shortage of irony here either. The fact that the company are being sued by shareholders, over loss of value no less, is almost insulting to the laid off people. 

I mean, as things currently stand, they can sit on the sidewalk and stare - such is their bargaining power. Which means they haven't lost value, is that it?

AltChar Activision Blizzard's CEO, Bobby Kotick Activision Blizzard CEO, Bobby Kotick

If you're one of the shareholders that wish to take part in the class-action lawsuit, you can find more information on Kuznicki Law's website.

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