Activision Under Siege, Split with Bungie Prompts Stock Drop, Lawsuits

February 2019
John Cannon, chair of Stradling’s litigation practice group, was quoted in an article published in the Los Angeles Business Journal, “Activism Under Siege, Split with Bungie prompts stock drop, lawsuits.” Activision Blizzard, the best-selling video game publisher in the world, is facing backlash after severing ties with game developer Bungie Inc. two years prior to the expiration of their ten-year contract. After the announcement, Activision’s stock price dropped and five lawsuits were filed claiming company executives deceived their investors by not warning them that they might end their partnership with Bungie. Cannon claims that at this stage, he doesn’t “have any belief the lawsuits will affect the company’s bottom line” but that could change “if litigants uncover evidence Activision falsely represented to shareholders its Bungie dealings or failed to disclose that the partnership unraveled months before the separation was announced.” Read the full article.
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