We've heard rumours of Activision Blizzard's shareholders looking into the company's split with Bungie but it's no rumour anymore as the company are now facing multiple class-action lawsuits for supposed misleading information in the case.
As it stands, two law firms are going after Activision Blizzard, and both Rosen and The Schall firms argue that shareholders have been given misleading information in regards to the split with Bungie.
As you may recall, Bungie not only left their now-former publisher, they took with them the rights to the entire Destiny franchise. The plaintiffs, however, claim they hadn't been told the truth about the situation.
Activision and Bungie apparently knew about the split for much longer than shareholders did. Moreover, the former's statements throughout the period implied that Bungie's franchise will remain under their wing.
The Schall Law Firm wrote, "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."
Rosen's text is pretty much the same, minus a few minor language differences, but both are pretty clear in one thing. The 10 per cent stock dive that Activision Blizzard suffered after Bungie should've been disclosed and shareholders suffered as a result.
To make matters worse, Activision Blizzard have been subject to some dubious leadership lately. We're talking about peculiar manoeuvres like cutting costs by gradually improving severance packages on one side, while bestowing lavish $15 million bonus to new CFO Dennis Durkin on the other.
Granted, the company found themselves in trouble after losing two CFOs in a single week, the sort of employees that aren't quite a dime a dozen, but one has to wonder whether they simply anticipated the trouble. Indeed, the slightest of hints at such unethical practices is more than an incentive to leave.
We're yet to hear an official response by Activision Blizzard, who just can't seem to catch a break as of late. We somehow doubt this will help their stock though.
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