On Wednesday, Activision Blizzard told CNN in a statement: “We disagree with the allegations made in this complaint and look forward to presenting our arguments in court.”
CNN obtained a public version of the complaint dated May 2 from the New York City Comptroller’s Office. The original lawsuit, filed in Delaware Chancery Court, was dated April 26. When asked for comment, the New York City Comptroller’s office referred CNN to the New York City Law Department, which is handling the litigation. The department did not immediately respond to a request for comment.
Thanks to the Microsoft settlement, the suit alleged, “Kotick will be able to escape responsibility and accountability entirely and instead continue to serve as an executive after the Merger closes. Worse yet, despite his potential liability.” for breaches of fiduciary duty, the Board allowed Kotick himself to negotiate the transaction with Microsoft The Board’s decision to entrust Kotick with the negotiation process is inexcusable for the additional reason that Kotick may personally receive substantial material benefits the value of which is not directly aligned with the price of the Merger”.
The lawsuit is the latest legal headache for Activision Blizzard, which is facing a series of federal investigations and investor lawsuits linked to allegations of workplace misconduct.
The complaint follows multiple requests for records of Activision Blizzard by New York pension officials since October 2021, and argues that the company has not been sufficiently responsive. Among the records officials are now seeking are board presentations, minutes, memos and other documents related to the Microsoft deal and specifically related to Kotick’s role in the matter.