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"Activision is closing its Foster City development studio which had less than 45 employees. We are currently making efforts to find opportunities for all employees at other Activision studios."
Being the house that birthed titles such as the Dave Mirra Freestyle BMX series, X-Men The Last Stand's game counterpart and the absolutely abhorrent BMX XXX, I don't think too much will be missed here.
However, Underground was also the studio behind the upcoming PlayStation 3 port of id Software's Enemy Territory: Quake Wars- due out in May, so it remains to be seen if their final effort would have been enough to salvage them.
Best of luck to the entire team at Activision.
Source: By Talking About Games