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Activision Blizzard sued by one of its shareholders for violation of the Securities Exchange Act

The company has been taken to court over its recent sale

Activision Blizzard is facing a lawsuit filed by a shareholder named Kyle Watson. He claims that the company violated the Securities Exchange Act while it was in the process of being sold to Microsoft for $68.7 Billion a short while ago.

In the legal documents provided by Polygon, it has been said- “the process deployed by the Individual Defendants [Activision Blizzard] was flawed and inadequate, was conducted out of the self-interest of the Individual Defendants and was designed with only one concern in mind – to effectuate a sale of the Company by any means possible”. It further goes on to say, “Is it not surprising, given this background to the overall sales process, that it was conducted in an inappropriate and misleading manner”   

Activision Blizzard sued by shareholder over alleged misleading sales process

The lawsuit filed by the shareholder against Activision Blizzard includes mentions of the “golden parachute” for some directors and executives. It was previously reported that Bobby Kotick, the CEO will be getting upwards of $14 Million from the deal and now, it seems that there’s over $24 million for Armin Zerza, the CEO, more than $29 million for Daniel Alegre, the COO and more for others. 

activision blizzard lawsuit
Image via Scribd

Watson demands a new SEC preliminary proxy statement with all omitted information and any “untrue statements” removed and “rescissory damages” when the acquisition is successfully completed.

In a statement to Polygon, an Activision Blizzard spokesperson said: “We disagree with the allegations made in this complaint and look forward to presenting our arguments to the court.” Activision Blizzard is already under the law’s scrutiny and this is yet another lawsuit that they’ll have to now counter or settle.

What are your thoughts as a shareholder filed a lawsuit against Activision Blizzard? Let us know in the comments below!

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