Activision is under investigation for Fraud following Bungie split
Following the news that Bungie now has the full rights to Destiny after Activision announced their split publicly this week, things are looking quite bad for Activision, in the past year alone their stock price has been falling at a rapid pace, and its only getting worse following the Bungie announcement as the stock took another dive. Share prices falling is the least of their concern as they are now being investigated for fraud and unlawful business practices.
According to a recent report from PR Newswire, an investigation has kicked off concerning suspected unlawful business practices and other types of securities fraud within their daily operations. The report was set up simply as an alert to shareholders and is an official disclosure on behalf of the investors of Activision Blizzard.
The investigation is being led by Pomerantz LLP, a firm that is one of the premier names with a specialization in corporate functionality, securities, and antitrust class litigation. There’s a lot of speculation regarding the reason behind the abrupt split from Bungie after a 10-year contract, but the two companies did offer up their own statements earlier this week:
“When we first launched our partnership with Activision in 2010, the gaming industry was in a pretty different place. As an independent studio setting out to build a brand new experience, we wanted a partner willing to take a big leap of faith with us. We had a vision for Destiny that we believed in, but to launch a game of that magnitude, we needed the support of an established publishing partner,” reads Bungie’s full statement.
“With Activision, we created something special. To date, Destiny has delivered a combination of over 50 million games & expansions to players all around the world. More importantly, we’ve also witnessed a remarkable community – tens of millions of Guardians strong – rise up & embrace Destiny, to play together, to make and share memories, and even to do truly great things that reach far beyond the game we share, to deliver a positive impact on people’s everyday lives.”
The team also announced that plans for the separation are already under way and that both teams are dedicated to making sure the fans aren’t hurt by the transitional process.
Activision also released their own statement: “Today we’re announcing plans for Bungie to assume full publishing rights and responsibilities for the Destiny franchise,” reads their official statement. “Going forward, Bungie will own and develop the franchise, and Activision will increase its focus on owned IP and other projects. Activision and Bungie are committed to a seamless transition for the Destiny franchise and will continue to work closely together during the transition on behalf of the community of Destiny players around the world.”