Law firm encouraging shareholders to sue Activision Blizzard over Bungie split Kuznicki Law joins search for lead plaintiff after publisher made materially false and misleading statements

James Batchelor UK Editor Tuesday 5th March 2019 Share this article Share

Companies in this article Activision Blizzard

Another law firm has joined the push to find a lead plainiff against Activision Blizzard on behalf of shareholders, accusing the publisher of misleading them over the end of its partnership with Bungie.

Kuznicki Law PLLC is inviting anyone who purchased shares between August 2, 2018 and January 10, 2019 to submit their losses for a class action suit filed earlier this year by Pomerantz LLP in the Central District Court of California.

The complaint centres around the break-up between Activision Blizzard and Bungie, whereby the former sold back the publishing rights for Destiny to its developer. Kuznicki alleges that Activision "made materially false and/or misleading statements" and failed to disclose certain facts around this decision.

In the firm's Loss Submission Form, it claims Activision failed to disclose that "the termination of Activision Blizzard and Bungie's partnership... was imminent", or that this "would foreseeably have a significant negative impact on Activision Blizzard's revenues."

It further claims that, as a result, "Activision Blizzard's public statements were materially false and misleading at all times." There are details on how shareholders can participate in the lawsuit on the form.

Activision Blizzard previously said the split with Bungie was because Destiny 2 failed to meet financial expectations. In a recent SEC filing, it recognised $164 million in revenues from Destiny for 2018 as a result of the split.

For the record: A previous version of this story stated that Kuznicki Law had filed a lawsuit against Activision Blizzard, rather than merely seeking a lead plaintiff for the existing class action. The error has been amended above.

Additional reporting by Rebekah Valentine.