Five New York City employee retirement groups that hold shares in embattled video game maker Activision Blizzard are suing Activision, saying the company failed to turn over financial records as the groups tried to investigate whether Activision had secured a fair price in its planned sale. to Microsoft.
The lawsuit, filed in Delaware state court, says New York groups asked whether Activision harmed its shareholders by agreeing to sell the company to Microsoft for $70 billion, or $95 per share. worthless. But the lawsuit says they can’t investigate the company records they want to examine, as Activision refuses to hand over them all.
The groups “try to access certain ledgers and records to probe the board’s independence and indifference,” he says, referring to Activision’s board of directors.
The complaint comes from groups including the New York City Fire Department Pension Fund and the New York City Teachers’ Pension System and was dated April 26. It was reported early Wednesday. by Axios.
Pension funds are questioning whether Activision CEO Bobby Kotick struck a quick and undervalued deal with Microsoft last year with little board oversight to avoid any personal consequences he and his company could face for his sexually abusive treatment. complaints against managers.
“Kotick was aware of the large number of credible allegations of misconduct made by the company’s senior executives – but did nothing to address them or prevent further crimes,” the lawsuit said. “Therefore, Kotick, along with other board members, faced the strong possibility of liability for breach of trusteeship.”
An Activision spokesperson said the company “disagrees with the allegations made in this complaint and looks forward to bringing our claims to court.”
The New York lawsuit joins a string of legal lawsuits against Activision, which makes popular games like Call of Duty and Overwatch. Last summer, a California employment agency sued Activision, accusing it of promoting a toxic and sexist work environment in which women are routinely harassed. In response, employees protested and senior managers were forced out, although Mr. Kotick remained.