Video Game Co. Wants Out Of Investors’ Stock-Drop Suit
Law360 (August 12, 2019, 2:51 PM EDT) — Video game developer Activision Blizzard Inc. is pushing a California federal court to dump a proposed class action accusing it of hiding problems in its yearslong collaboration with an independent game studio, saying the “opportunistic” suit fails to properly plead securities fraud.
Activision shareholders allege a stock drop and the loss of $3.64 billion in market capitalization following the company’s “unexpected” announcement in January terminating its partnership with American video game developer Bungie LLC, but a stock drop in and of itself isn’t enough to plead securities fraud, Activision argued Friday.
The shareholders claim Activision misled them by concealing tension with…