Stock drop caused "investigation" not the other way around. (Destiny)

by narcogen , Andover, Massachusetts, Tuesday, January 15, 2019, 06:21 (1940 days ago) @ Harmanimus

You also have to account that some of the loss of ATVI value may stem from pending investigations into possible Securities Fraud in the company.

No, because that was caused BY the separation from Bungie. They are not isolated incidents.

The "fraud investigation" is a class action lawsuit being offered to investors who were affected by the single-day stock drop that was caused by the announcement of the end of the deal with Bungie. The announcement from the law firm provides the mention of the end of the Bungie agreement as the only context for their invitation to investors to join the class action.

A lot of irresponsible reporting has portrayed this as an SEC "investigation", which currently it is not. The law firm, attempting to drum up business for their class action, uses that word to make their offer sound more officious.

Now, I'm not saying ATVI didn't mislead investors. It is possible they did. If they knew this was going to happen before the last time they made guidance and did not include it, they very well did mislead investors.

But the stock drop was NOT caused by the announcement of the "investigation", the "investigation" was caused by the stock drop which was caused by the Bungie announcement-- even the law firm doing the "investigation" says so.

https://www.prnewswire.com/news-releases/shareholder-alert-pomerantz-law-firm-investigates-claims-on-behalf-of-invest...