Topic: Interesting news about Activision...

[Julin Eurthyr]

Seems like there might be even more of a delay in SFC 3's patch if this is true-true...

Activision hit with Class-Action Lawsuit - possible insider trading...

Quote:

Activision slammed with class-action lawsuit

Legal complaint accuses executives at the True Crime publisher of profiting from an illegal accounting scheme--a charge the company vehemently denies.
In a lawsuit filed in US District Court on Friday, several Activision executives and board members were accused of profiting by falsely reporting revenues. Of the 11 individuals named, the complaint states that Activision CEO Bobby Kotick and president Kathy Vrabeck personally gained by selling company stock whose price was inflated based on statements they knew--or should have known--were incorrect.

Lawyers from the firm Milberg Weiss said in a statement that the defendants "provided the market with rosy reports about the company's actual and projected future results," which had the impact "of causing the Company's shares to trade at prices nearly 300% higher" than what could have reasonably been expected. The complaint goes on, alleging that "with the Company shares at new heights, defendants then completed their massive second wave of insider trading pocketing tens of millions of dollars."

The highly detailed 52-page complaint continued, saying the defendants, "as part of their effort to boost the price of Activision stock, ?misrepresented Activision's true prospects in an effort to conceal Activision's improper acts until they were able to sell at least $483 million worth of their own Activision stock." Lawyers invoked "generally accepted accounting principles" and charged the defendants with "engaging in an illegal accounting scheme" and violations of the Securities Exchange Act of 1934.

Among the practices alleged in the complaint are that Activision shipped product to retail customers that it knew would subsequently be returned; that it booked revenue on "consignment sales"; and that it issued "side-letter agreements" with customers, which provided extended payment terms (or other beneficial terms for the customer) that were not included in the formal documentation associated with the order. The complaint also alleges that Activision would often "re-package old products as being new or updated versions, when, in fact, these supposedly new products were barely different than the preceding versions."

As reported by Reuters, Milberg Weiss lawyers allege that immediately after Activision posted better-than-expected profits for the quarter ending in December 2000, it raised its forecast of future earnings. It then reduced its forecast for the quarter ending December 2002 on weak game sales. During that period, Activision shares rose nearly 28 percent. It was during the period of February 1, 2001, and December 17, 2002, that company executives and other defendants sold company stock, and those transactions are the basis for the lawsuit.

Today, Activision issued a response saying that it "strongly denied the allegations" and added that it would "vigorously defend this case."

By Curt Feldman -- GameSpot
Posted: 03/08/04 04:11 PM

[Khalee]

If they go under (I HOPE) what happens to the license to the  trek games? do they go back to Paramount by default. God I wish Activision and or Paramount would just give the ok for Talderen to patch the game without their interfearence, and needing their final aproval. Fustrating that they have been setting on the patch for over a year, and refuse to ok it because they are bitching at one another.

[Age]

  This is what I would (Hopr To Happen) is that Paramount reconsiders giving Interplay thier license back as they have no problems with them Paramout would be wise to do this and order Activision to let Taldren to release the patch and look over other support that STC3 may need they can do it the best and besides they unlike Interplay do not keep all thier patches on thier support site.I hope this comes to an end soon so Taldren is not lying in limbo so other SFC. products can get published.  

[J. Carney]

Yeah, the best thing that can happen is that Paramount considders pulling the Trek liscence if A-vision is found at fault (would that be legal... to protect their intrest?). The worst is that A-vision gets crippeled and can't produce any more Trek games and NOONE else can get the lisence. We could either get really lucky or really screwed on this one, folks.

Here's to Interplay and Taldren working on SFC4: Galaxies at War by this time next year!

[Interloper]

I HEARBY SECOND THAT!!!!  

[EmeraldEdge]

Or maybe A-vision suffers a serious black mark but retains the Trek license and uses it to try and erase the disgrace (assuming they are convicted), thus bringing about a new age in Trek games.

Definitely some interesting news to follow, and see how it effects the other lawsuit.  

[Rod O'neal]

Well, I never hope that a large employer like Activision goes out of business. That hurts many more people than those at fault. This is all alleged, at this point. Please, keep that in mind. We're all innocent until proven guilty. If the accusations are true, I hope they lock up the guilty parties and forget where the keys are. This type of crime is little more than larceny on a huge scale. Those "10's 0f millions of dollars" were stolen from all of the thousands, and thousands of investors. Many peoples lives are ruined by this type of crime.

It is definitely time for a major shake up of the Trek licensing though. I know that it's not life and death, but lots of us fans are really suffering because of the way Trek is being handled now. Not just in gaming either. TV and movie fans aren't getting much of a product right now either.

Corporate suits just don't have the ability to entertain. Want proof? Let one take you to lunch sometime.    

[FFZ]

  I have no love for activision, they have been turning out garbage since the 1980s, their logo is synonamous with bug filled crap or disapointing design, I only bought SFC 3 based on iit being Taldren's SFC engine.

Sure enough, Activision worked its 'magic' and we can't even get a decent patch for the game, and if they ever make it an offical patch, god help us if their are other bugs, cause activision won't.  

[The_Infiltrator]

I wouldn't be quite so quick to sit around and pray for the return of interplague. From what I can tell it would be an upgrade, but that's not saying much.

[Age]

  Hi Rod have you heard anything on StarFleet Cammand 4 Galaxies at war.I read in hear somewhere and now I can not find it it had your signature on Galaxies at War.I was said that Taldren and Interplay or working on it
  Thanks  

[Age]

   What do you mean SFC 4 Galaxies at war you are getting these rumurs started now everyone is wondering about this.
   Please Explian this for or is the just speculation.
   I to would like see the same  thing .  

[Julin Eurthyr]

Seems like there might be even more of a delay in SFC 3's patch if this is true-true...

Activision hit with Class-Action Lawsuit - possible insider trading...

Quote:

Activision slammed with class-action lawsuit

Legal complaint accuses executives at the True Crime publisher of profiting from an illegal accounting scheme--a charge the company vehemently denies.
In a lawsuit filed in US District Court on Friday, several Activision executives and board members were accused of profiting by falsely reporting revenues. Of the 11 individuals named, the complaint states that Activision CEO Bobby Kotick and president Kathy Vrabeck personally gained by selling company stock whose price was inflated based on statements they knew--or should have known--were incorrect.

Lawyers from the firm Milberg Weiss said in a statement that the defendants "provided the market with rosy reports about the company's actual and projected future results," which had the impact "of causing the Company's shares to trade at prices nearly 300% higher" than what could have reasonably been expected. The complaint goes on, alleging that "with the Company shares at new heights, defendants then completed their massive second wave of insider trading pocketing tens of millions of dollars."

The highly detailed 52-page complaint continued, saying the defendants, "as part of their effort to boost the price of Activision stock, ?misrepresented Activision's true prospects in an effort to conceal Activision's improper acts until they were able to sell at least $483 million worth of their own Activision stock." Lawyers invoked "generally accepted accounting principles" and charged the defendants with "engaging in an illegal accounting scheme" and violations of the Securities Exchange Act of 1934.

Among the practices alleged in the complaint are that Activision shipped product to retail customers that it knew would subsequently be returned; that it booked revenue on "consignment sales"; and that it issued "side-letter agreements" with customers, which provided extended payment terms (or other beneficial terms for the customer) that were not included in the formal documentation associated with the order. The complaint also alleges that Activision would often "re-package old products as being new or updated versions, when, in fact, these supposedly new products were barely different than the preceding versions."

As reported by Reuters, Milberg Weiss lawyers allege that immediately after Activision posted better-than-expected profits for the quarter ending in December 2000, it raised its forecast of future earnings. It then reduced its forecast for the quarter ending December 2002 on weak game sales. During that period, Activision shares rose nearly 28 percent. It was during the period of February 1, 2001, and December 17, 2002, that company executives and other defendants sold company stock, and those transactions are the basis for the lawsuit.

Today, Activision issued a response saying that it "strongly denied the allegations" and added that it would "vigorously defend this case."

By Curt Feldman -- GameSpot
Posted: 03/08/04 04:11 PM

[Khalee]

If they go under (I HOPE) what happens to the license to the  trek games? do they go back to Paramount by default. God I wish Activision and or Paramount would just give the ok for Talderen to patch the game without their interfearence, and needing their final aproval. Fustrating that they have been setting on the patch for over a year, and refuse to ok it because they are bitching at one another.

[Age]

  This is what I would (Hopr To Happen) is that Paramount reconsiders giving Interplay thier license back as they have no problems with them Paramout would be wise to do this and order Activision to let Taldren to release the patch and look over other support that STC3 may need they can do it the best and besides they unlike Interplay do not keep all thier patches on thier support site.I hope this comes to an end soon so Taldren is not lying in limbo so other SFC. products can get published.  

[J. Carney]

Yeah, the best thing that can happen is that Paramount considders pulling the Trek liscence if A-vision is found at fault (would that be legal... to protect their intrest?). The worst is that A-vision gets crippeled and can't produce any more Trek games and NOONE else can get the lisence. We could either get really lucky or really screwed on this one, folks.

Here's to Interplay and Taldren working on SFC4: Galaxies at War by this time next year!

[Interloper]

I HEARBY SECOND THAT!!!!  

[EmeraldEdge]

Or maybe A-vision suffers a serious black mark but retains the Trek license and uses it to try and erase the disgrace (assuming they are convicted), thus bringing about a new age in Trek games.

Definitely some interesting news to follow, and see how it effects the other lawsuit.  

[Rod O'neal]

Well, I never hope that a large employer like Activision goes out of business. That hurts many more people than those at fault. This is all alleged, at this point. Please, keep that in mind. We're all innocent until proven guilty. If the accusations are true, I hope they lock up the guilty parties and forget where the keys are. This type of crime is little more than larceny on a huge scale. Those "10's 0f millions of dollars" were stolen from all of the thousands, and thousands of investors. Many peoples lives are ruined by this type of crime.

It is definitely time for a major shake up of the Trek licensing though. I know that it's not life and death, but lots of us fans are really suffering because of the way Trek is being handled now. Not just in gaming either. TV and movie fans aren't getting much of a product right now either.

Corporate suits just don't have the ability to entertain. Want proof? Let one take you to lunch sometime.    

[FFZ]

  I have no love for activision, they have been turning out garbage since the 1980s, their logo is synonamous with bug filled crap or disapointing design, I only bought SFC 3 based on iit being Taldren's SFC engine.

Sure enough, Activision worked its 'magic' and we can't even get a decent patch for the game, and if they ever make it an offical patch, god help us if their are other bugs, cause activision won't.  

[The_Infiltrator]

I wouldn't be quite so quick to sit around and pray for the return of interplague. From what I can tell it would be an upgrade, but that's not saying much.