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Class Actions Are Being Filed Against Activision After Bungie Split

Class Actions

Like Activision hasn’t had enough of a rocky start to the year. It’s now been revealed by different law firms that class actions are being filed actions the game publisher.

Related: 18% Of Developers Working on Next-Gen Games

After it was recently revealed that Activision and Bungie have ended an 8-year partnership, Activision’s share prices fell by 10%. It seems the headaches aren’t over for Activision, with several class action lawsuits being filed against the game publisher.

The class actions being filed against the company seems to all stem from the same incident – the Activision and Bungie split. According to one of the class actions that’s being filed by a law firm representing various Activision shareholders who have purchased shares during a certain period, Activision is being accused of making false/misleading statements about and didn’t disclose that:

  • Activision and Bungie are splitting;
  • That the split gave Bungie full publishing rights for the Destiny franchise; and,
  • The split would affect Activision’s share prices negatively.

Shareholders who purchased Activision shares during a certain period can request that the law firms add them as plaintiffs in the class action.

Class actions, if successful, usually result in a lump sum amount being ordered by the court to be paid to a large number of plaintiffs who have shown that they have suffered damages. The lump sum will usually be paid into a trust, which each plaintiff has to claim from.

Whether the class actions against Activision will be successful, depends on whether it can be shown to the court that the game publisher did mislead its shareholders by withholding information regarding the split from Bungie and that this misleading resulted in the shareholders suffering damages.

Destiny has been a huge game for both Bungie and Activision, selling over 50 million copies worldwide. So, it must’ve been a hard pill to swallow for Activision, although the company doesn’t seem to have any hard feelings. Whether it remains so optimistic and amicable towards Bungie, remains to be seen and depends on how successful these class actions against Activision will be.


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