Activision New York City sued over the deal

Activision New York City sued over the deal

THE Activision Blizzard Goes through another process. Archived this time New York Employees Retirement System And pension funds representing the city fire department, police and teachers. The lawsuit alleges that the CEO, Bobby CotickCould not negotiate the sale to the company Microsoft And entered into a deal to avoid liability for his role in allowing misconduct and violence in the workplace.

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Disclosure: Activision Blizzard

THE Process Arose from an October 2021 request to inspect books and records Activision Blizzard As part of the panel’s investigation, specifically, to maintain a safe and non-discriminatory work environment for its staff, especially minorities and women, and not to engage in repeated misconduct, discrimination and harassment and to respond to serious allegations by senior executives. The Activism.

THE Activism Complied with the complaint, but on January 18, the company announced a purchase agreement Microsoft. The lawsuit alleges that the deal was devalued Activism Snowstorm, Not only because of the stock price bonus – which the lawsuit describes as a “small 1.16%” – but also because it fails to take into account the value of the bonuses due to the charges. They will disappear if and when Activision Blizzard To become an affiliate Microsoft.

The plaintiffs said the payment was made so quickly and at such a big discount because the board members Activism SnowstormAnd Kotick, in particular, face “a high probability of liability for breach of fiduciary duty” for failing to comply with allegations of misconduct with the company.

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Disclosure: Activision Blizzard

By announcing the merger, Cotik will be able to fully escape responsibility and will instead continue to serve as executive director after the merger closes. Worse, despite its potential liability for breach of fiduciary duty, the board allowed Kotik himself to negotiate a transaction with Microsoft. The decision of the Council to entrust it with this negotiation process is not justified for the additional reason that Cotik personally receives significant material benefits, the value of which does not directly correspond to the cost of the merger.“- It is said in the lawsuit.

It also mentions the purchase of shares Activism Per Alexander von Furstenberg, Bar Dealer And David Geffen – All friends or associates of Kotik – in March 2022 for about $ 108 million. This led to an investigation into possible insider trafficking U.S. Department of Justice And for Security and Exchange Commission.

Purchase Activism Snowstorm, However it has already been approved by the company board, Is still subject to regulatory approval, which can be a problem. While some cases against the company have already been resolved, some remain open. Even the process of firing an employee Cottage Remains as the CEO of the company to resolve issues of misconduct and harassment.

Representative Activision Blizzard Told PC Gamer that the company “Disagrees with the allegations made in this complaint and looks forward to presenting arguments to the court“.

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