Activision Under Investigation For Unlawful Business Practices
This week Bungie made the announcement about ending their partnership with Activision and Bungie retained the rights of the Destiny IP, this lead to Activision Blizzard’s stock price dropped dramatically, and it seems it’s getting worst for the publisher as an investigation lead by Pomerantz LPP is taking place in order to find out if executives had engaged in unlawful business practices, it appears as Activision could be guilty of securities fraud.
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.
Securities Fraud, also known as stock fraud and investment fraud, is a practice that induces investors to make purchase or sale decisions on the basis of false information, frequently resulting in losses, in violation of the securities laws.
Generally speaking, securities fraud consists of deceptive practices in the stock and commodity markets, and occurs when investors are enticed to part with their money based on untrue statements. Securities fraud includes misstatements on a public company’s financial reports. The term also encompasses a wide range of other actions, including insider trading, front running and other illegal acts on the trading floor of a stock or commodity exchange.
The latest we heard from Activision is this message below:
“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.”
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