Activision Blizzard Has Been Sued By Shareholder For “False And Misleading” Statements

Activi­sion Bliz­zard is once again being sued, this time in a class-action law­suit which claims the com­pa­ny made “false and mis­lead­ing” state­ments to share­hold­ers regard­ing the ongo­ing inves­ti­ga­tion, and even­tu­al law­suit, by the Cal­i­for­nia Depart­ment of Fair Employ­ment and Hous­ing.

The law­suit, filed in Cal­i­for­ni­a’s Cen­tral Dis­tirct and brought by the Los Ange­les-based Rosen Law Firm, alleges that Activi­sion Bliz­zard did not prop­er­ly inform share­hold­ers about the two-year inves­ti­ga­tion and is now seek­ing for dam­ages to those who have recent­ly obtained Activi­sion Bliz­zard stock.

The suit also alleges that the state­ments about the com­pa­ny’s busi­ness oper­a­tions were in vio­la­tion of fed­er­al secu­ri­ties law. It adds that “as a result of Defen­dants’ wrong­ful acts and omis­sions, and the pre­cip­i­tous decline in the mar­ket val­ue of the Company’s com­mon shares, Plain­tiff and oth­er Class mem­bers have suf­fered sig­nif­i­cant loss­es and damages.”

Activi­sion Bliz­zard stock has already seen a decline since the news of the orig­i­nal law­suit went pub­lic, and is cur­rent­ly down more than 7% over the past five days. State­ments regard­ing the state law­suit from Activi­sion Bliz­zard exec­u­tive vice pres­i­dent Fran Townsend, and lat­er CEO Bob­by Kotick, caused thou­sands of cur­rent and for­mer employ­ees to sign an open let­ter on July 27th, demand­ing change. Hun­dreds on employ­ees walked out in protest on July 28th.

This new law­suit was filed by plain­tiff Gary Cheng, who pur­chased Activi­sion Bliz­zard shares some­time with­in the last five years. The law­suit names Bob­by Kotick, as well as cur­rent Activi­sion Bliz­zard chief finan­cial offi­cer Den­nis Durkin and for­mer chief finan­cial offi­cer Spencer Neu­mann, as defendants.

I am a Platinum lover and an ex- Cod-aholic. I've been playing games since I was 5 years old and I refuse to quit, despite my mother's attempts to get me to. God of War and its successors are my all time favorite games.

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