Should Activision Blizzard have better informed its investors about the current sexism lawsuit? This is now being examined by several law firms after the ATVI share has lost ten percent of its value within a very short period of time.
Several law firms have investor rights launched their own investigation into Blizzard to check whether a securities claim is possible for their clients. Activision Blizzard has had to answer for the pending sexism and discrimination lawsuit over the past few days. The law firms’ class action lawsuit seeks to minimize investor losses.
It is alleged that Activision Blizzard did not educate its investors about the ongoing investigation into the company and its possible impact on the stock price. The ATVI share has fallen rapidly in value in the past five days. Investors had to watch how the stock lost up to ten percent.
What: Google Finance
Companies that trade their shares on the market are obliged to provide regular updates on what is happening around the company if these could influence the share price. If this does not happen, the company is violating its fiduciary duties. By failing to inform investors of the two-year investigation by the State of California and what is now happening, investors’ image of the stock was sold as significantly more positive than it actually is. It has to be said that these investigations are not uncommon in such stock crashes.
CEO Bobby Kotick announced in a public opinionthat Activision was Blizzard’s first public statement on the indictment “tone deaf” and has now turned on the law firm WilmerHale, which is to assess the situation as an independent firm. WilmerHale has many years of experience in evaluating corporate cultures. Investigations on one of the biggest baseball teams of the USA (New York Mets) led to the termination of two longstanding Mets executives.
It remains to be seen whether this will have the desired effect and changes at Activision Blizzard. Employees recently organized a walk-out protest and more and more influencers from the Blizzard scene are boycotting the games company.
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