Activision Blizzard is being sued by the New York City Employees’ Retirement System (NYCERS) and pension funds over the company’s pending sale to Microsoft.
According to an Axios report, the lawsuit was filed last week because the organization believes Activision Blizzard had a rush order to get through its current legal woes. NYCERS, which owns shares in the company, says in the lawsuit that the deal hurt the company’s value.
The organization says Microsoft’s $95-per-share offer undervalues the company, as Activision Blizzard’s stock was trading close to it before news of rampant harassment and discrimination in the workplace broke.
The lawsuit asks the company to release various documents related to the proposed acquisition, as well as documents related to five other potential buyers that Activision Blizzard allegedly received in an SEC filing regarding the Microsoft acquisition.
Additionally, New York wants to see the documents to sue the company’s CEO, Bobby Kotick, and board members specifically for trying to expedite the deal with Microsoft.
“Given Kotick’s personal responsibility and liability for Activision’s broken workplace, the board should have realized that it was unable to negotiate a sale of the company,” the lawsuit reads.[The deal allows] Kotick and his fellow board members a means of avoiding liability for their egregious breaches of fiduciary duty.”
When asked for comment, an Activision representative told GI.biz that the company “agrees with the allegations made in this complaint” and looks forward to presenting its arguments in court.
Activision Blizzard is also facing a lawsuit filed by a current employee alleging discrimination and sexual harassment at the company. The employee also states in the lawsuit that he received retaliation for speaking out.
There’s also the ongoing issue with the California Department of Fair Employment and Housing and a lawsuit filed by family members of a deceased employee and investors. The company is also under investigation by the SEC for the company’s response to workplace issues.
https://www.vg247.com/activision-blizzard-is-being-sued-by-new-york-city-over-the-microsoft-buyout-deal Activision Blizzard is being sued by New York City over Microsoft’s buyout deal