These shareholders are now preparing for a potential legal battle against Activision over what they argue is misleading information by the publisher. Kuznicki Law PLLC is a law firm in the United States that is seeking to file a class-action lawsuit against Activision on behalf of these investors. The firm says that those who purchased Activision shares between August 2, 2018 and January 10, 2019 were misled about its plans to sell the Destiny IP to Bungie.

Activision did not disclose how soon the split would happen or that it would have “a significant negative impact on Activision Blizzard’s revenues.” Not long after the split was announced, Activision’s stock plummeted, potentially representing major losses for shareholders.

“Activision Blizzard’s public statements were materially false and misleading at all relevant times," added the law firm. Kuznicki Law PLLC is now encouraging shareholders to submit their information to the firm by March 19 if they would like to be represented in the class action lawsuit.

Kuznicki Law PLLC is just one of several other US law firms which are seeking to file class action lawsuits against the video game publisher. At least half a dozen law firms have begun to look at suits which also allege purposefully misleading information on Activision’s part. These lawsuits say that investors suffer damages because of the sale of the Destiny IP, but Activision did not properly warn shareholders of the sale.

This is not what Activision will have hoped for. Activision explained that it sold the Destiny IP to Bungie because the franchise was not meeting the company’s expectations. The sale was also completed as part of wider cost-cutting measures at the company.

Activision has also just let go 800 employees from its studios, while Activision-owned developer Blizzard Entertainment has also been paying employees to leave the company. Activision studios are also shifting gears, being told to release new, more lucrative games. Activision wants to make money and save money, but if it has to shell out millions of dollars to cover legal costs, and to potentially cover damages for shareholders, that’s a direct hit on its cost-cutting efforts.

Source: KClass Law