Activision Blizzard under investigation after Bungie splits

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The investigation commenced following concerns brought up by Activision’s board.

With Bungie’s separation from Activision Blizzard out of the way, the move has opened up a fraud investigation on latter company. The investigation commenced following concerns brought up by Activision’s board. Pomerantz Law Firm is said to heading up the investigation.

The law firm, which has offices all over the United States, is known for its corporate, antitrust, and securities investigations. In Activision Blizzard’s case, the investigation will center around whether or not the company’s officiers and board of directors engaged in securities fraud. Not only that but the firm will investigate whether the company participated in unlawful business practices or not, as well.

It’s been a tough week for the company. Stock prices fell 12 percent following the announcement. Activision also saw the exits of two of its executives. Even so, the company moved quickly in naming two new executives to fill those positions.

The company is known for its Call of Duty and World of Warcraft franchises. Activision released Call of Duty: Black Ops 4, and Blizzard released its latest expansion for the long-running MMORPG last fall. World of Warcraft currently retains 1.7 million subscribers, whereas Black Ops 4 saw a $500 million launch back in October.

Activision Blizzard and Bungie developers faced backlash over the Destiny franchise as many players of the shooter complained that content and in game items were hiding behind a large paywall. Bungie will maintain the current roadmap for Destiny 2, but hinted that there will be big surprises as well.

Are you excited for the Bungie and Activision Blizzard split? Are you surprised at all by the investigation that’s taking place? Let us know in the comments below or on Google+Twitter, or Facebook. You can comment on our MeWe page by joining the MeWe social network, as well.

  Source: PR Newswire
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