Activision Blizzard and its CEO Bobby Kotick are facing a new lawsuit from New York City.
As reported by Axios, the complaint filed in Delaware by New York City Employees’ Retirement System (NYCERS) claims that Kotick allegedly sold Activision Blizzard to Microsoft in an attempt to escape liability.
“Given Kotick’s personal responsibility and liability for Activision’s broken workplace, it should have been clear to the Board that he was unfit to negotiate a sale of the Company,” the suit reads. “But it wasn’t.”
NYCERS, which owns Activision Blizzard stock, demands the company provide extensive documentation pertaining to the Microsoft deal.
NEWS: NYC is suing Activision, saying Bobby Kotick was unfit to negotiate the Microsoft deal–and that the deal was rushed to get him and the board out of danger of lawsuits over how they handled misconduct at the company
Details, complaint at the linkhttps://t.co/m7LVLaeaPd
— Stephen Totilo (@stephentotilo) May 4, 2022
Many already saw the buyout as a golden parachute for Kotick and other board members, as early reports claimed he would leave Activision Blizzard once the acquisition was complete. The company’s shareholders already voted in favor of Microsoft’s purchase, and the deal should go through on June 30, 2023, if it passes the Federal Trade Commission’s investigation.
The ongoing turmoil at Activision Blizzard likely isn’t slowing down regardless. Kotick was reportedly aware of sexual misconduct happening at the company but did nothing about it. The initial lawsuit from The California Department of Fair Employment and Housing did close with an $18 million settlement recently, but Gov. Gavin Newsom allegedly meddled with the outcome.
Written by Kyle Campbell on behalf of GLHF.
