Activision Blizzard Under Investigation for Fraud Following Bungie Split - Game Rant

Call of Duty publisher Activision Blizzard is under investigation for fraud after a claim was brought forth by the company’s investors. Currently, the lawfirm of Pomerantz LLP is gathering potential investors for a class action lawsuit, but as of yet no official suit has been filed.

Although the timing of the announcement would suggest that the investigation is related to Activision and Bungie’s recent separation, the press release does not mention any connection. Still, Activision’s stock did drop following the announcement that Bungie would split from Activision and take publishing rights for the Destiny franchise, which certainly didn’t please the company’s investors.

Given that information, it’s possible that investors called for the investigation in order to see how much Activision Blizzard knew ahead of the split and if that had an impact on the stock price. Another possibility is that stock shares were sold right before the split was announced, which would constitute insider trading.

activision bungie split

The only thing that we can say for certain at this point is that Activision’s officers allegedly participated in fraud or other unlawful business practices. It’s a very broad claim that could possibly have huge ramifications for Activision if true, but could just as easily be swept away after some general questioning.

Nevertheless, it’s fair to say that Activision has had a rough week. Though the split from Bungie seems to be amicable, many Destiny fans and even other publishers are excited by the prospect of Bungie operating apart from Activision. There is a belief among the community that Activision was pushing a lot of the unpopular features in Destiny like Eververse and Season Passes, but it was only an assumption. In essence, Activision is what prevented Destiny from realizing its true potential.

Regardless, it’s important to point out that Activision Blizzard is only under investigation. There is no active lawsuit and Pomerantz is merely trying to grab investors for a potential class action.

Source: PR Newswire

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