Five law firms explore legal action over Activision’s split with Bungie

Bungie’s recent split with Activision-Blizzard earlier this month took the gaming world by surprise, and it seems it also caught investors flat-footed. The publisher’s stock price took a 10% hit when news hit that it was losing the Destiny 2 developer, and now several law firms are preparing to file class action lawsuits over the sudden breakup. A total of five US law firms have announced class actions related to the split, two of which joined this past week. The New York-based Rosen Law Firm, which specializes in representing investors, alleges that Activision-Blizzard violated federal securities law by failing to “disclose that (1) the termination of Activision-Blizzard and Bungie Inc.’s partnership … was imminent” and that this was likely to have a major impact on the company’s revenues. Los Angeles-based firm Schall Law makes similar allegations in its lawsuit, accusing Activision-Blizzard of violations of the Securities Exchange Act of 1934 and Rule 10b-5. Schall’s complaint claims that Activision-Blizzard “made false and misleading statements to the market.” Both firms say their suits have been filed with appropriate courts, but that they are also actively seeking investors who have lost money on Activision-Blizzard stock to join their classes.

from PCGamesN http://bit.ly/2MDiO6k