Activision Blizzard Faces Two Class Action Lawsuits After Bungie Split

Activision Blizzard

The split between Activision Blizzard and Bungie caused shockwaves throughout the video game industry. Activision’s stocks tanked following the news, and a legitimate rebound feels unlikely. Those numbers should drop even further after today’s news on the legal side of things. 

On January 24, a pair of law firms announced they will be filing class action lawsuits against Activision Blizzard. The firms accuse the industry giant for misleading the public leading up to the split with Bungie. Rosen Law Firm and the Schall Law Firm are both seeking investors who bought into the company between August 2, 2018 and January 10, 2019 who feel misled by Activision.

Here is Rosen Law Firm’s statement on the case:

“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 (ATVI) 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.”

The Schall Law Firm posted a similar message on their site:

“According to the Complaint, the Company made false and misleading statements to the market. Activision Blizzard’s termination of its partnership with Bungie Inc., which would give full publishing rights for the Destiny gaming franchise to Bungie, was about to occur. The end of the agreement between the two Companies was likely to have a considerable negative impact on Activision Blizzard’s revenues moving forward. Based on these facts, the Company’s public statements throughout the class period were false and materially misleading. When the market learned the truth about Activision Blizzard (ATVI), investors suffered damages.”

It’s impossible to know at this point whether Activision Blizzard’s missteps were caused intentionally or through incompetence. However, it’s incredibly clear that the sharks smell blood in the water. The company could be in more trouble than any of us realized. Expect to hear more news on these lawsuits—and potentially more court filings—in the near future.

Thankfully, Bungie does not appear overly concerned about the future of the Destiny franchise. The studio does not plan on changing any of their roadmap for Destiny 2 and have expressed plenty of optimism looking ahead. They also have an extremely powerful fan in Phil Spencer, who publicly supports their future projects. While Activision may be in serious trouble, Bungie looks poised to take massive leaps forward following the split.

What do you think about these lawsuits? Do they have any merit to them? Do you think they will actually get to court? Is Activision Blizzard in serious trouble? Let us know your thoughts in the comment section below! And for more gaming news and updates, follow DFTG on Facebook and Twitter!

Thanks, Wccftech.

Drew Weissman230 Posts

Drew is a freelance writer for DFTG. He's the former Managing Editor of Haogamers and has been published in the Chicago Tribune and The Paragon Journal. He also edited the novel Three Brightnesses and Artist Journey: Rachta Lin (2016 and 2017 editions).


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