Rock band No Doubt sued Activision Blizzard Inc. over the use of their likenesses on its new Band Hero product, accusing the company of turning the rockers into a virtual karaoke act. No Doubt and Activision had a contract allowing the company to use the band members in the game, but Activision went beyond the agreement by allowing gamers to use avatars of the band, led by singer Gwen Stefani, pictured, performing songs from other rock groups. Band Hero is a variation on Activision's Guitar Hero game, which was launched in 2005 and passed the $2 billion sales mark at the beginning of this year. The lawsuit was filed in Los Angeles Superior Court, a day after Band Hero hit stores, and it accuses Activision of fraudulent inducement and breach of contract.

Activision Blizzard Inc. reported unaudited consolidated financial results for the third quarter and nine months ended September 30, 2009. For the quarter, the company reported operating income of $9 million, income before income tax provision of $20 million compared to operating loss of $194 million, loss before income tax provision of $170 million for the same period last year. For the nine months, the company reported operating income of $406 million, income before income tax provision of $427 million and net income of $399 million or $0.30 per diluted share on total net revenue of $2,722 million, compared to operating loss of $86 million, loss before income tax provision of $58 million and net loss of $36 million or $0.04 per diluted share on total net revenue of $1,387 million for the same period last year. Total non-GAAP net revenues for the nine months were $2,280 million. The company provided earnings guidance for the fourth quarter of 2009. The company expects to deliver GAAP net revenues of $1.33 billion and GAAP loss per share of $0.04. The company reaffirms earnings guidance for the full year of 2009. The company expects to deliver GAAP net revenues of $4.05 billion and GAAP earnings per diluted share of $0.26. On a non-GAAP basis, the company expects earnings per diluted share of $0.63. The company announced that George L. Rose was appointed to the newly created position of Executive Vice President and Chief Public Policy Officer. The company also announced that Christopher B. Walther, Procter & Gamble's general counsel for Western Europe, has been named to succeed Mr. Rose as the company's Chief Legal Officer.

Activision Blizzard Inc. announced earnings results for the third quarter of 2009. The company reported its adjusted sales, which include revenue deferred from games' online components, was $755 million. The reaffirmed earnings guidance for the full year 2009. The company still expects to end the year on a high note while the industry as a whole is facing a decline. The company expects $4.5 billion in adjusted revenue in the fourth quarter of 2009.