Shareholders suing Activision Blizzard over unlawful business practices?

[Coronius]

Pomerantz LLP is investigating claims on behalf of investors of Activision Blizzard, Inc. ("Activision" or the "Company") (NASDAQ: ATVI). Such investors are advised to contact Robert S. Willoughby at rswilloughby@pomlaw.com or 888-476-6529, ext. 9980.

The investigation concerns whether Activision and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.

https://www.prnewswire.com/news-rele...300777066.html


I have no idea how serious this is, but it's undeniably interesting to see how things have unfolded for ATVI these past couple of months. Mike Morhaime leaving, firing tons of employees, diminishing share value, many games not doing all that well, etc.

What do you think this means in the long run? I'm not very knowledgeable of this kind of stuff.

[RobertoCarlos]

well its not good and would not be all that surprised to see legal actions.

But theres a big difference between being inept and misjudging your market than actually doing illegal doings.

If you can tell me the difference between illegal and stupid then i'd have my step brother fired tomorrow

[unholytestament]

If making bad decisions was illegal this would happen a lot more often...

[Chromeshellking]

If making bad decisions was illegal this would happen a lot more often...

I would preface anything I say with this, bad decisions are never and will never be illegal. That said if shareholders become highly leery of your business conduct and begin to ask others to contact them while during an investigation it is NEVER a good sign.

[tripleh]

With how bad BFA has gotten , rng,story,classes,delay to flying,etc. I'd rather see the servers get shut down from this. Just so Alex and Danuser wouldn't be able to butcher the lore anymore. The game is old and the current devs just don't care anymore and it shows.

[xenogear3]

Why are they not suing Blizzard when it was making record profit 2 years ago?

[Halicia]

well its not good and would not be all that surprised to see legal actions.

But theres a big difference between being inept and misjudging your market than actually doing illegal doings.

If you can tell me the difference between illegal and stupid then i'd have my step brother fired tomorrow

Talking entirely out of my !@# here, but recent events give the appearance that rats are fleeing a sinking ship, and this is often what you might see before a company is forced to reveal that they've been using artistic license to conceal the underlying financial issues that have reached a critical mass.

Then again, maybe this is just a target that looks weak, so it opens itself to attack.

[Jtbrig7390]

Why are they not suing Blizzard when it was making record profit 2 years ago?

......

They are Suing Activision-Blizzard........

The company's are one in the same and have been since like 2014.

[Halicia]

bad decisions are never and will never be illegal.

bad decisions often lead to illegal actions taken to cover them up, and if good decisions don't eventually turn things around... those illegal actions will come to light.

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......

They are Suing Activision-Blizzard........

The company's are one in the same and have been since like 2014.

I think the point they were making is that they're suing activision blizzard NOW, when they are down, and not THEN when they were up.

[RobertoCarlos]

Talking entirely out of my !@# here, but recent events give the appearance that rats are fleeing a sinking ship, and this is often what you might see before a company is forced to reveal that they've been using artistic license to conceal the underlying financial issues that have reached a critical mass.

Then again, maybe this is just a target that looks weak, so it opens itself to attack.

well i dunno about the 2nd half of your post, i dont quite follow.

But in terms of rats fleeing the ship. The talented developers with job offers outside of blizzard are probably taking it. Cost cutting from activision isnt healthy for staff moral. If you're unsure of your job security you will take up offers elsewhere

[Arkthugal]

......

They are Suing Activision-Blizzard........

The company's are one in the same and have been since like 2014.

Wrong! Activision-Blizzard is a holding company for their combined stocks. Activision and Blizzard Entertainment are still entirely separate entities.

[Kellorion]

Why are they not suing Blizzard when it was making record profit 2 years ago?

Why would they? Making big profits isnt illegal.

[Jtbrig7390]

Wrong! Activision-Blizzard is a holding company for their combined stocks. Activision and Blizzard Entertainment are still entirely separate entities.

As of around 2014-2015 No that isn't true at all.

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I think the point they were making is that they're suing activision blizzard NOW, when they are down, and not THEN when they were up.

Oh well that's cause making money isn't illegal "sometimes".

[DesoPL]

If this is true, good riddiance i say. And hope same will get EA.

[Halicia]

Oh well that's cause making money isn't illegal "sometimes".

Its likely not the making money that would get them in trouble with shareholders, but the not making money part, and then being deceptive about it... and these sorts of things usually turn up when the company is having a harder time hiding it.... which would explain the defections and "cost cutting".

well i dunno about the 2nd half of your post, i dont quite follow.

Just saying, as with the (unrelated) Fallout 76 debacle, when it rains it pours. There's a possibility that this is a relatively trivial lawsuit that was emboldened by the appearance that ActiBlizz is weak right now. Big companies tend to have a skeleton or two in their closet that shareholders are happy to overlook.... *UNTIL* the flow of money is in question... and then those skeletons start surfacing.

[Yunru]

Hmm. Top people selling their shares. Yeah i can see why shareholders are pissed off.

[Arkthugal]

As of around 2014-2015 No that isn't true at all.

Wrong! Learn how companies work!

[Justpassing]

They must be suing beacuse BfA was so bad!

/s

It'll be interesting how this'll work out for them though.

[glowpipe]

Blizzard goes bankrupt, Mike Morhaim starts a new company called "Snowstorm" and makes a new game called Planetary Warcraft. Make it so

[Low Hanging Fruit]

Legal or illegal will be decided in the courts. As for me, I am happy for any attack against the evil and bloated empire that Activision-Blizzard has become.