A Shareholder Is Suing Acitivision Blizzard Over Alleged Securities Exchange Act Violations
Seems not everyone is happy with the plan to sell to Microsoft.
Some of you probably called this, seeing as things like the purchase of an entire company rarely goes off without a hitch, but it seems not all of Activision Blizzard’s shareholders are happy with the would-be acquisition. According to a lawsuit filed in California by shareholder Kyle Watson – and uploaded by Polygon, the sale is “unfair” in that it’s intended to “procure […] significant and immediate benefits” for the board and senior management. The suit also notes potential conflicts of interest and claims it’s not in the best interest of…well, just about everyone. More specifically, it mentions Blizzard, Watson himself, and shareholders in general. It also goes on to note that the company’s officers and directors will receive a good bit of money from the deal.
Included in the allegations is one that the SEC filing is “misleading and incomplete”, noting specific information relating to an "ad hoc committee” that was in charge of the sale. Another bit he claims is misleading is the information the company provided the SEC on employment following the transaction. He’s asking the court to order Activision Blizzard to put out a new statement that provides more information and no “untrue statements”. And, if the transaction goes through anyway, Watson is looking to receive damages.
It will be interesting to see how the suit turns out. We know players are looking forward to Microsoft taking over and all of Activision Blizzard’s library ending up on Xbox Live. This may or may not put a hitch in things.
Note: Activision Blizzard is still under investigation by the state of California for serious harassment charges. CEO Bobby Kotick is alleged to have known about such actions within his company – and performed some himself – and shielded the perpetrators from consequences.
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About the Author
QuintLyn is a long-time lover of all things video game related will happily talk about them to anyone that will listen. She began writing about games for various hobby sites a little over ten years ago and has taken on various roles in the games community.
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