A press release was sent out over the weekend from Pomerantz LLP declaring that they are investigating Activision Blizzard for fraud. After the split with Bungie and the loss of the Destiny IP, the firm released this information claiming they would start an investigation into the matter on behalf of investors. This does not confirm that the company actually did commit fraud, only that at some point-in-time, some of the investors decided that a third party needed to get involved and look into the matter to make sure they had all the facts and weren’t lied to about what happened. The split came so suddenly and without much being said on either side as far as specifics, it seems only reasonable that those involved with financing things be made aware of what happened, which is the purpose of this investigation. We’ll keep you updated as things unfold.
On January 11, 2019, the Company disclosed that it would be separating from its design and development partner Bungie, Inc. (“Bungie”) and that Bungie will assume full publishing rights and responsibilities for the Destiny franchise. Bungie had developed the Destiny franchise with Activision as publisher. In the first five days of the Destiny franchise’s release, it sold $325M at retail. Following this announcement, Activision’s stock price fell sharply during intraday trading on January 11, 2019.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members.