The publisher Activision Blizzard has parted ways with Bungie and Destiny 2. Now a law firm is investigating whether everything was above board in the interest of investors. The publisher’s stock has fallen by 9.37%.
This is the situation: On January 11, Activision Blizzard announced that it was parting ways with Bungie.
Bungie will retain the rights and responsibilities to the “Destiny” franchise.
As a result of this announcement, Activision’s stock significantly lost value on the stock market. The stock fell from $51.35 to $45.50 and then only slightly recovered to $46.54. That is a loss of 9.37%.
This firm is now investigating: The law firm Pomerantz LLP is currently investigating Activision Blizzard in the interest of investors.
The press release states that Pomerantz has offices in New York, Chicago, Los Angeles, and Paris. It is said to be a leading firm for reviewing such class action lawsuits against large corporations.
This is the subject of the investigation: It is said that the investigation aims to determine whether Activision or some of its executives were involved in “business practices not in accordance with the law.”
The firm is investigating fraud.
The press release includes a form to join a class action lawsuit against Activision Blizzard.
According to the press release from the firm, it has successfully settled many lawsuits for damages worth several million dollars in the past.
What’s behind this: Currently, no lawsuit is being filed against Activision. The law firm is merely investigating whether it could file a class action lawsuit.
What violations the firm specifically suspects does not emerge from the press release.
- One possibility is that the firm is taking action due to the significant stock loss – this is quite common on the stock market.
- Or it could be that the firm suspects insider trading, that stocks were sold before Activision publicly announced the news of the split.
A stock scandal once affected the Norwegian company Funcom. The head of the company was said to have known that the MMORPG “The Secret World” would not sell well and had sold shares in Funcom before the MMORPG could launch.
Using such “insider information” is illegal.
