Press release: Pomerantz Law Firm Investigates Claims On Behalf of Investors of Activision Blizzard, Inc

Okabe

Member
Aug 24, 2018
8,397
Link to article

On January 11, 2019, the Company disclosed that it would be separating from its design and development partner Bungie, Inc. ("Bungie") and that Bungie will assume full publishing rights and responsibilities for the Destiny franchise. Bungie had developed the Destiny franchise with Activision as publisher. In the first five days of the Destiny franchise's release, it sold $325M at retail. Following this announcement, Activision's stock price fell sharply during intraday trading on January 11, 2019.

The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members.
MOD EDIT Added ‘press release to thread title, fixed quotemarks
 
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Serene

Community Resettler
Member
Oct 25, 2017
41,130
So what is the argument, that this deal should have been disclosed to all investors beforehand?
It’s the only thing I could see. That the investors think the Bungie deal was a big enough financial thing that it should have been brought to their attention before Activision separated from it.
 

Steroyd

Member
Oct 27, 2017
691
So what is the argument, that this deal should have been disclosed to all investors beforehand?
Yeah, even though it was "below expectations" it was still a significant enough of a chunk that profit is only going to be down year on year, with all of their games coming out this ye-- BWAHAHA I can't finish that sentence.
 

elenarie

Developer at DICE
Verified
Jun 10, 2018
3,223
Actually, business changing events like this is something you do not want to disclose publicly before they happen.

One reason for this is, if such a plan is announced or people inside the company get wind of it, that would open up the potential of insider trading even more.
So when such a big thing is about to be done, the people that know about it and are in charge of it, have their accounts frozen so that they cannot sell anything, in order to make sure that they truly stick to the decisions they're about to make.

Which is also another reason why investors, regular employees, and the general public find out about this pretty much at the same time, to reduce the risk of insider trading.

That is, that's how it is supposed to be done, to protect the company. Obviously I've no insight in how this was handled. :)
 

Aztechnology

Community Resettler
Avenger
Oct 25, 2017
8,425
It’s the only thing I could see. That the investors think the Bungie deal was a big enough financial thing that it should have been brought to their attention before Activision separated from it.
I guess to ask to what end? Maybe the arrangement details should have been made known to investors (the terms of Bungie/Activision-Blizz arrangement) but the outcome of stocks falling would have been the same either way no? Or are they saying larger stock holders should have been told, and smaller ones left out to dry?

I guess I just don't see what difference it would have made.
 

Son of Sparda

Community Resettler
Member
Oct 25, 2017
5,613
The hell is happening with Activision as of late. It feels like it's bad news after bad news for them.
 

Dark Ninja

Member
Oct 27, 2017
3,892
I’m sure that could have potentially led to insider trading. A company as big as activision probably gets sued or investigated on a regular basis.
 

ShinMaruku

Member
Oct 25, 2017
977
The hell is happening with Activision as of late. It feels like it's bad news after bad news for them.
Part of it is overreaction, their stock slide is because of a bear market, the further fluctuation is just them dealing with repercussions of misreading the market. They thought they could milk the market way more than it can handle.
 

Morfid_Plays

Self Requested Ban
Member
Oct 27, 2017
943
Just deserts Bobby , constant defiling of the video game industry paying dividend as of late
 

Syriel

Member
Dec 13, 2017
6,978
We calling press releases "articles" now?

So what is the argument, that this deal should have been disclosed to all investors beforehand?
There is no argument. OP posted an ad as "news."

There is no federal investigation. There is no known fraud.

There was a drop in the stock price and now a law firm is looking for easy money with investors who made a bad get.

The only way this would be anything is if there was proof of insider trading and any company the size of Activision is going to have a ban on trading for employees well before financially relevant news is released.
 

Hailinel

Member
Oct 27, 2017
21,350
Actually, business changing events like this is something you do not want to disclose publicly before they happen.

One reason for this is, if such a plan is announced or people inside the company get wind of it, that would open up the potential of insider trading even more.
So when such a big thing is about to be done, the people that know about it and are in charge of it, have their accounts frozen so that they cannot sell anything, in order to make sure that they truly stick to the decisions they're about to make.

Which is also another reason why investors, regular employees, and the general public find out about this pretty much at the same time, to reduce the risk of insider trading.

That is, that's how it is supposed to be done, to protect the company. Obviously I've no insight in how this was handled. :)
Seriously.

I work for a publicly traded company, and part of being a publicly traded company is keeping information secret until such a time that it can official announcements can be made to the public. Telling investors "Yeah, Bungie is about to get out of their contract" is asking for bad shit to happen.
 

Nostremitus

Member
Nov 15, 2017
4,894
I wonder if this is something the SEC would investigate if they weren't almost completely shut down right now.
 
Oct 26, 2017
9,401
"Why didn't these assholes give us inside information so we could sell our shit ahead of time?!"

Actually, business changing events like this is something you do not want to disclose publicly before they happen.

One reason for this is, if such a plan is announced or people inside the company get wind of it, that would open up the potential of insider trading even more.
So when such a big thing is about to be done, the people that know about it and are in charge of it, have their accounts frozen so that they cannot sell anything, in order to make sure that they truly stick to the decisions they're about to make.

Which is also another reason why investors, regular employees, and the general public find out about this pretty much at the same time, to reduce the risk of insider trading.

That is, that's how it is supposed to be done, to protect the company. Obviously I've no insight in how this was handled. :)
.
 

Juturna

Member
Oct 27, 2017
598
Actually, business changing events like this is something you do not want to disclose publicly before they happen.

One reason for this is, if such a plan is announced or people inside the company get wind of it, that would open up the potential of insider trading even more.
So when such a big thing is about to be done, the people that know about it and are in charge of it, have their accounts frozen so that they cannot sell anything, in order to make sure that they truly stick to the decisions they're about to make.

Which is also another reason why investors, regular employees, and the general public find out about this pretty much at the same time, to reduce the risk of insider trading.

That is, that's how it is supposed to be done, to protect the company. Obviously I've no insight in how this was handled. :)

Yes, this is correct, so I would hope they are coming at this for a different legal reason.
 

Syriel

Member
Dec 13, 2017
6,978
I wonder if this is something the SEC would investigate if they weren't almost completely shut down right now.
No. Without a shred of evidence of wrongdoing, the SEC isn't going to bother. Stocks drop in value all the time.

Yes, this is correct, so I would hope they are coming at this for a different legal reason.
This is the investor version of an ambulance chasing lawyer. Unless they can state a cause of action, this is nothing.
 

AntiMacro

Member
Oct 27, 2017
1,677
Alberta
It says they're investigating - not suing. Probably just looking into whether or not execs shorted or sold stock prior to the announcement. That's really the only thing I can think of that could be cause for any kind of action.
 

chrominance

Member
Oct 25, 2017
3,740
It's not even clear from the press release whether the firm has any clients on board for this investigation or not.

The only thing I can think of that would stick here is if investors sued because they felt Activision wasn't working in the best interests of their shareholders when they separated from Bungie and let them have the Destiny IP. I don't know what the legal test for that would be, though.
 

Kin5290

Member
Oct 26, 2017
2,954
1) There’s no lawsuit. It’s the announcement for an investigation into any alleged misconduct that may lead to a lawsuit. This doesn’t mean Activision Blizzard is being sued or that they’re in trouble.

2) As far as game development and publishing goes, these guys represent the bad guys, the public investors and shareholders who require consistent and unsustainable year over year growth at the cost of burning out good IPs and developers. If you subscribe to Jim Sterling then the people served by this law firm are your real villains, not the corporate suits at Activision Blizzard.
 

fanboi

The Fallen
Oct 25, 2017
4,301
Sweden
1) There’s no lawsuit. It’s the announcement for an investigation into any alleged misconduct that may lead to a lawsuit. This doesn’t mean Activision Blizzard is being sued or that they’re in trouble.

2) As far as game development and publishing goes, these guys represent the bad guys, the public investors and shareholders who require consistent and unsustainable year over year growth at the cost of burning out good IPs and developers. If you subscribe to Jim Sterling then the people served by this law firm are your real villains, not the corporate suits at Activision Blizzard.
So this is like the Spectre organisation and Mads Mikkelsen is like Bobby?