Unless you have been living under a rock the past week or two you will know that Activision and Bungie are to part ways with Bungie taking Destiny with them in the divorce.
Unfortunately the news sent Activision’s share price diving, losing 10% of it’s value and leaving investors very annoyed. In fact they’re so annoyed that they are launching two class action lawsuits against Activision, claiming the company misrepresented itself when predicting reviews for the coming financial year.
The lawsuits will suggest that Activision would have known about the Bungie split months ago and should have built this in to their recent financial predictions.
According to the lawsuit, defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (1) the termination of Activision Blizzard and Bungie Inc.’s partnership, giving Bungie full publishing rights and responsibilities for the Destiny franchise, a series of science fiction-themed video games, was imminent; (2) the termination of the two companies’ relationship would foreseeably have a significant negative impact on Activision Blizzard’s revenues; and (3) as a result, Activision Blizzard’s public statements were materially false and misleading at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.