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Oklahoma City, OK (January 22, 2019) – On January 18, 2019, a securities class action lawsuit was filed in the United States District Court for the Central District of California against Activision Blizzard, Inc. (NASDAQ: ATVI). The complaint alleges violations of federal securities laws, Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5, including allegations of issuing a series of material or false misrepresentations to the market which had the effect of artificially inflating the market price during the Class Period, which is August 2, 2018 through January 10, 2019. More specifically, the complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) the termination of Activision Blizzard and Bungie’s partnership, giving Bungie full publishing rights and responsibilities for the Destiny franchise, was imminent; (ii) the termination of the two companies’ relationship would foreseeably have a significant negative impact on Activision Blizzard’s revenues; and (iii) as a result, Activision Blizzard’s public statements were materially false and misleading at all relevant times.
On April 29, 2010, the Company announced its entry, through its wholly-owned subsidiary Activision Publishing, Inc., into an agreement with Bungie, Inc. (“Bungie”), the developer of blockbuster game franchises including Halo, Myth,and Marathon. The agreement with Bungie gave Activision Blizzard exclusive rights to publish and distribute video games developed by Bungie for the next ten years.
The partnership between Activision Blizzard and Bungie yielded the commercially successful Destiny franchise, a series of science fiction-themed video games. In September 2014, Activision Blizzard released Destiny, the first installment in the franchise, developed by Bungie. Activision Blizzard announced that the Company sold $500 million of Destiny into retail stores and first parties worldwide on the first day of its release, making the game the largest video game franchise launch in history at that time. Over the following two years, Bungie developed and Activision Blizzard released four expansions for Destiny. In September 2017, Activision Blizzard released a full sequel, Destiny 2. On September 15, 2017, Activision Blizzard announced that Destiny 2 had “surpassed the original’s records for engagement and digital sales in launch week.” To date, Bungie has developed and Activision Blizzard has released three expansions for Destiny 2.
On January 10, 2019, Activision Blizzard and Bungie announced the end of their business relationship. That same day, in an Securities and Exchange Commission filing, Activision Blizzard stated that Bungie “would assume full publishing rights and responsibilities for the Destiny franchise. Going forward, Bungie will own and develop the franchise.”
Following these announcements, the Company’s stock price fell $4.81 per share, or 9.37%, to close at $46.54 on January 11, 2019.
Plaintiff seeks to recover damages on behalf of all Activision Blizzard, Inc. shareholders who purchased common stock during the Class Period and are therefore a member of the Class as described above. You may move the Court no later than Tuesday, March 19, 2019 to serve as a lead plaintiff for the entire Class. However, in order to do so, you must meet certain legal requirements pursuant to the Private Securities Litigation Reform Act of 1995.
If you wish to discuss this action, obtain further information and participate in this or any other securities litigation, or should you have any questions or concerns regarding this notice or preservation of your rights, please contact: Robin Hester at firstname.lastname@example.org