Activision Blizzard under investigation for securities fraud

activision 760x400

Pomerantz LLP is investigating the entertainment franchise and video game company Activision Blizzard for unlawful business practices including likely securities fraud. Pomerantz Law Firm has also issued a shareholder alert. The news comes shortly after Activision’s divorce with Bungie Inc., on January 10th.

Shortly after Activision’s split from Bungie, their shares fell around 10%. Also, Bungie has kept full publishing rights and responsibilities to Destiny after the split, as Activision has confirmed that it would not receive any revenue from the popular game this year. Investors are the most concerned parties with this announcement.

Statements released by Activision and Pomerantz

Activision released a joint statement with Bungie on Twitter, stating that Bungie will own and develop the much-loved franchise hereafter. Activision will be focusing more on owned IP and other projects.

The law firm Pomerantz released a press statement saying that it is investigating claims of securities fraud on behalf of Activision Blizzard Inc.’s investors. Pomerantz LLP has not given out much information in the press release except that Destiny grossed $325 million in the first five days following its launch. It also said that the stock prices of Activision dropped sharply during the intraday trading on 11th of January, the day following the split with Bungie.

Pomerantz LLP confirmed that Activision and some of its officers and/or directors have been involved in unlawful business practices like securities fraud.

A sudden break in a ten-year agreement with Bungie

The split with Bungie was a surprise to the investors as the agreement was due to expire in 2020. However, when stocks are sold prior to such an announcement, insider trading can be considered. The investigation by Pomerantz is supposed to look into such kind of insider trading by estimating whether Activision or certain officers were aware of departure from the contract with Bungie.

Shawn Du'Mmett

Shawn Du'Mmett

Former IT development and consultant, remote team and collaboration expert, PM, CCO, writer, dreamer, idealist looking to collaborate with global teams on a global teal/turquoise organisation. Shawn's dream is working together openly, to get what writers need and want, and to solve biggest global problems. He is building a collaboration system from the start that everyone can own and define, allowing them to work together, to decide how it works and to their highest ideals.

Related News

Hot Stories

Polkadot price analysis: DOT looks promising as it starts a new uptrend, at $5.70
The Absolute Panorama of a Decentralized Exchange: All you need to know
Bitcoin, Ethereum, Neo, and Mina Daily Price Analyses – 4 December Roundup
Ripple vs SEC Case: Closure coming sooner than expected?
Harmony Price Prediction 2023-2031: Can ONE Rise Soon?

Follow Us

Industry News

Are crypto miners losing faith in Bitcoin? Over 10K BTC dumped
Coin Signals ordered to return funds to victims
Weekly crypto price analysis 4th Dec: BTC, ETH, XRP, BNB, ADA, DOGE
DeFi predictions 2023: How will crypto and blockchain evolve? 
Avalanche partners with Alibaba Cloud to launch new validators

Add Your Heading Text Here