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Game Design Platform Insiders Allegedly Cashed In as Profit Sank

Nov. 23, 2022, 9:39 PM

Unity Software Inc. directors and executives sold about $735 million in stock, while the graphics and game software company concealed data and code problems affecting its revenue, a stockholder says in a derivative suit.

The company’s public statements were full of confidence in February, but by May it described first-quarter 2022 “challenges,” shareholder Krishna Movva says. He filed his complaint Tuesday in the US District Court for the Northern District of California.

The company’s woes allegedly included an underperforming tool for its customers and data losses due to “ingesting bad data from a large customer.”

Eleven officers and directors are ...