New York City is suing Activision, claiming CEO Bobby Kotick was “unfit to negotiate a sale of the company” and that the Microsoft deal was rushed to allow Kotick and other board members to escape “liability for misconduct.”
As reported by Axios, a new lawsuit from the New York City Employees’ Retirement System and pension funds for the city’s teachers, police, and firefighters was filed in Delaware on April 26. Each group owns Activision stock and claims Kotick’s actions “hurt the company’s value.”
New York City is demanding several documents related to the Microsoft deal, other buyers, and more. The city claims Kotick was not fit to negotiate the sale of Activision since he was already in the spotlight during the negotiation period. The groups allege that the Microsoft deal allows Kotick and other board members to “escape liability for their egregious breaches of fiduciary duty.” The lawsuit also claims Microsoft’s $95 per share offer “undervalues the company.”
This is the latest of several lawsuits involving Activision Blizzard. Last summer, the company faced a lawsuit from the California Department of Fair Employment and Housing for allegations of sexual misconduct and employee mistreatment. Activision also recently settled for $18 million with the U.S. Equal Employment Opportunity Commission (EEOC) over allegations of sexual harassment, gender-based discrimination, and retaliation.
A public version of the lawsuit can be found in the original Axios report.
Published: May 4, 2022 12:35 pm