New York City pension funds are suing Activision over financial documents.
Five New York City employee pension groups who own stock in Activision Blizzard, the beleaguered video game maker, have sued Activision, saying the company failed to deliver financial documents as the groups try to investigate whether Activision has secured a fair price in its planned sale to Microsoft.
The lawsuit, filed in the Delaware state court, says New York groups are asking whether Activision did its shareholders a disservice by agreeing to sell the company to Microsoft for about $ 70 billion, or about $ 95 per share, which it says. pension groups is undervalued. But they can’t dig into the corporate records they want to review, the lawsuit says, because Activision refused to hand them all over.
The groups “seek access to certain books and documents to investigate the independence and disinterest of the board,” says the lawsuit, referring to Activision’s board of directors.
The complaint comes from groups including the New York City Fire Department Pension Fund and the Teachers’ Retirement System for the City of New York and was dated April 26. It was reported earlier on Wednesday by Asio.
Pension funds wonder whether Activision chief executive Bobby Kotick negotiated a quick and underrated deal with Microsoft late last year, with little board oversight, to avoid any personal consequences he and his company might having to deal with complaints against executives for the treatment of sexual misconduct.
“Kotick was aware of numerous credible allegations of misconduct by the company’s top executives, but he did nothing to address them or prevent further crime,” the lawsuit said. “Kotick therefore faced a strong likelihood of liability for fiduciary duty violations, along with other board members.”
An Activision spokesperson said the company disagrees “with the allegations made in this complaint and looks forward to bringing our arguments to court.”
The New York lawsuit joins a litany of lawsuits against Activision, which makes games like Call of Duty and Overwatch popular. Last summer, a Californian employment agency south of Activision accused her of fostering a toxic and sexist work environment in which women were regularly harassed. In response, employees protested and senior executives were forced to leave, even though Mr. Kotick remained.