SAN DIEGO & SANTA MONICA, Calif.--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP announces that shareholders of Activision Blizzard, Inc. (NASDAQ: ATVI) filed a class action complaint against the company for alleged violations of the Securities and Exchange Act of 1934 between August 2, 2018 and January 10, 2019. Activision develops and distributes video games.
View this information on the law firm's Shareholder Rights Blog: https://www.robbinsarroyo.com/activision-blizzard/
Activision Failed to Disclose Material Facts Affecting Their Revenue to the Investing Public
According to the complaint, on April 29, 2010, Activision announced that its wholly owned subsidiary Activision Publishing, Inc. entered into an agreement with Bungie, Inc., giving Activision exclusive rights to publish and distribute video games developed by Bungie for the next ten years. This partnership resulted in the financially successful Destiny franchise, a series of science fiction-themed video games. As recently as November 8, 2018, Activision filed a quarterly report with the U.S. Securities Exchange Commission on Form 10-Q listing Destiny as among the company's "key product franchises" and stating that it had "established a long-term alliance with Bungie to publish its game universe, Destiny." During an earnings call the same day, the company was asked about the "health of the Destiny franchise" but failed to mention any rift between itself and Bungie that could lead to a premature split of the partnership. Then, on January 10, 2019, Activision and Bungie announced the end of their business relationship, and that Bungie would "assume full publishing rights … for the Destiny franchise. Going forward, Bungie will own and develop the franchise." On this news, Activision's stock fell close to 10%, and has yet to recover.
Activision Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leo Kandinov at (800) 350-6003, LKandinov@robbinsarroyo.com, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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