comscore Activision Blizzard shareholders file lawsuits cite the deal to not be in 'the best interest'
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Activision Blizzard shareholders file lawsuits cite the deal to not be in 'the best interest'

The Activision Blizzard lawsuit questioned potential conflicts of interest citing that the deal is not in the best interest” of Activision Blizzard nor company stockholders.

Activision Blizzard

Two Activision Blizzard shareholders last month filed lawsuits against the developer following the gold deal with Microsoft. Another shareholder has now followed the suit and filed a lawsuit against Activision and its board of directors over alleged SEC (Securities Exchange Act) violations in the ‘proposed plan’ for Microsoft acquisition. Also Read - Window 11 update: Microsoft to roll out Android apps to 5 new countries

Shareholder Kyle Watson filed it in California on Thursday with Watson’s lawyers calling the plan for the sale as ‘unfair for a number of reasons.’ The lawyers outlining in the SEC proposal (via Polygon) said that the board is looking to “procure for themselves and senior management […] significant and immediate benefits.” Also Read - Microsoft working on a low-cost streaming device to compete with Apple TV

The lawsuit also questioned potential conflicts of interest citing that the deal is not in the best interest” of Activision Blizzard nor company stockholders. As per the Polygon report, Watson is looking for the court to order the game developer to release a new SEC preliminary proxy statement that includes more facts and no “untrue statements.” Also Read - Minecraft’s big wilderness update is coming on June 7

Previously, shareholder Shiva Stein filed suit against Activision Blizzard as well, making similar allegations to Watson. While stockholders are giving a hard time to the popular video game developer, Activision Blizzard CEO Bobby Kotick and the company have been under the radar and subject of investigations due to allegations of workplace sexual misconduct.

As for the lawsuits, the developer made a similar comment as it did earlier to CNET. “We disagree with the allegations made in this complaint and look forward to presenting our arguments to the Court,” an Activision Blizzard spokesperson told Polygon. Apparently the Microsoft acquisition is expected to be reviewed by FTC (Federal Trade Commission). While the deal was expected to close in by next year, current circumstances might cause a delay.

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  • Published Date: March 9, 2022 3:43 PM IST
  • Updated Date: March 9, 2022 5:20 PM IST



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