Activision is facing another lawsuit… this time it’s coming from New York City! According to a recent report from Axios, a lawsuit was filed against Activision last month by the New York City Employees’ Retirement System as well as the pension funds for NYC teachers, police officers, and firefighters. Each group, which owns stock in Activision, believes that Activision-Blizzard CEO Bobby Kotick performed actions that “hurt the company’s value.”
What’s more interesting is that the lawsuit alleges Bobby Kotick was “unfit” to oversee the organization’s sale to Microsoft because Kotick was already in the public spotlight at the time of the deal’s negotiation. Moreover, the suit alleges the Microsoft deal was rushed so that Kotick and other board members could “escape liability for their egregious breaches of fiduciary duty.” The lawsuit also said that Microsoft’s offer of $95 a share undervalued the company.
New York City is currently demanding access to several documents related to the Microsoft deal and other buyers in order to further advance the case.
This is yet another lawsuit being levied against the gaming giant. Last summer, the company was sued by the California Department of Fair Employment and Housing for alleged sexual misconduct and employee mistreatment. It’s also worth noting that Activision recently settled a different lawsuit for $18 million that alleged sexual harassment and gender discrimination in the workplace.
(All information was provided by Axios and Dot Esports)
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