Activision Currently Under Investigation for Fraud Following Bungie Split
By LIANA 'LILI' RUPPERT - January 12, 2019
Following the news that Bungie has gained the full rights to Destiny after announcing their very public split with Activision, things are continuing to look a little grimmer for the big-name company. First, Activision's stock took a pretty steep dive following the breakup, now they are currently being investigated for fraud.
According to a recent report from Market Watch, a new investigation has kicked off concerning suspected unlawful business practices and other types of 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 and expansions to players all around the world. More importantly, we’ve also witnessed a remarkable community – tens of millions of Guardians strong – rise up and 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."
Though they mentioned they "enjoyed" their 8-year run with Activision, Bungie is ready to have the Destiny name fully in their grasp once more. 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 shortly thereafter released their own statement saying:
"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."
What this means for the future, no one knows yet. But with mounting concerns of Activision's influence over Blizzard, something weird is happening and it needs to be addressed before it's too late.
https://comicbook.com/gaming/2019/01/12/activision-under-investigation-for-fraud-bungie-slit/
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https://www.marketwatch.com/press-release/shareholder-alert-pomerantz-law-firm-investigates-claims-on-behalf-of-investors-of-activision-blizzard-inc—atvi-2019-01-11
https://www.prnewswire.com/news-releases/shareholder-alert-pomerantz-law-firm-investigates-claims-on-behalf-of-investors-of-activision-blizzard-inc—atvi-300777066.html