The law firm Pomerantz LLP announced that they are investigating Activision Blizzard’s fraud charge.
Pomerantz LLP, a law firm that specializes in corporate, securities, and antitrust class litigations, disclosed in a press release that they have received information that Activision Blizzard did not notify investors beforehand of their split from their partner, Bungie, in concerns for the stock price falling; if this is true, they will be investigating whether this was a deliberate act or if some of the investors happened to not be aware of it.
Activision Blizzard made an announcement on January 10th that they will be splitting from Bungie, the company that developed the Destiny series, after a 10-year partnership. Simultaneously, Bungie announced they have taken over the publishing rights for the Destiny franchise, which had been serviced by Activision Blizzard. This has caused Activision Blizzard’s stock price to fall from $ 51.35 (10th 16:00) to $ 45.48 (11th 10:00) based on NASDAQ.
However, Activision Blizzard’s fraud charge has not been proven true; the law firm is in the middle of an investigation, and no results from the said investigation have been announced. If any of the charges are found to be true, it is highly likely that it will be lead to a lawsuit filed by the investors.
Pomerantz LLP said that they are in the middle of investigating some of the Blizzard executives for stock fraud charges and illicit business practices; they are waiting for the investors to contact them if they wish to partake in the class action.