New York City provided a lawsuit to Activision Blizzardaimed primarily CEO Bobby Kotikaccused of compromising the value of the company and of having quickly concluded acquisition negotiations with Microsoft to evade liability for wrongdoing within the company.
As Axios reported, the lawsuit was filed in Delaware on April 26 by the New York City Employees’ Retirement System and the city’s teachers’ retirement fund groups, police and firefighters. These entities own Activision shares and believe that the CEO’s shares Damage to the value of the company.
The lawsuit was filed in Delaware court in Chancery and will allow pressure companies to gain access to their books and expose potential wrongdoing. Specifically, Activision Blizzard is required to provide a long list of documents, including materials regarding the agreement with Microsoft, information on the five potential buyers the company previously mentioned and more.
We also learned that there was pressure on this as early as last fall to find out what Bobby Kotik knew about cases of harassment and discrimination. As indicated in the complaint, access to accounting books was also an excuse Sue Kotick and Board Members of Activision Blizzard, guilty of devaluing the company through his conduct.
“Given Kotick’s personal responsibility and liability for Activision’s hacked workplace, it should have been clear to the Board of Directors that he was not qualified to negotiate the sale of the company,” the lawsuit says. “But it wasn’t.”
The lawsuit documents also state that the deal with Microsoft, which is still pending regulatory approval, allows “Kotick and his fellow board members to escape accountability for flagrant breaches of their fiduciary duty.” Purchasing $95 Microsoft stock reduces the company’s true value.
This is just another lawsuit that Activision Blizzard has faced since last summer, when it was formally accused of allowing harassment and gender discrimination in the workplace. The same Bobby Kotik accused of molesting an office worker.
“Bacon trailblazer. Certified coffee maven. Zombie lover. Tv specialist. Freelance communicator.”