Shareholders accuse CEO Bobby Kotik of mismanaging the company
In the middle of the Microsoft acquisition process, Activision Blizzard is the target of a new lawsuit against its CEO, Bobby Kotik.. The Delaware-initiated action on April 26 was launched by the Pension and Retirement Fund system, which represents New York teachers, police and firefighters.
According to the Axios website, Lawsuit accuses bailiff of speeding up Microsoft’s acquisition process as evading other lawsuits Who accuse him of misconduct while working for the company. The group that opened the process has a stake in the developer and claims that Kotick shares have contributed to its decline in market value.
New York demands that Activision Blizzard Provide a long list of documents, including materials related to the procurement of Microsoft and other potential stakeholders, cited by the Board of Directors in public announcements. The process also requires more detailed information about what The level of knowledge that Cotick possessed about allegations that the company was consistent with sexual harassment and violence practices.
The lawsuit accuses Kotik of incompetence
Although it is aimed at Activision Blizzard, The main goal of the process is to reach Kotik and cast doubt on his abilities. New York City said it was inconceivable that the executive had the freedom to continue operating the company even in the face of so many allegations.
In obtaining the required documents, the persons in charge of the process want to use the data contained in them File another lawsuit against the company’s CEO and board of directors. “Given Kotika’s personal liability in Activision’s spoiled workplace, it should have been clear to the board that it could not negotiate the sale of the company. But did not stay“- It is said in the lawsuit.
Wall Street investors bet Microsoft-Activision deal will not work
Analysts believe the FTC and other regulators may block the takeover
New York also says that an investigation is necessary because the acquisition of Microsoft as it is, Gives a simple solution to Kotik and other directors who have not fulfilled their obligations. In addition, the responsible persons state that The stock is priced at $ 95 The deal offered is a less-than-ideal assessment of Activision Blizzard, given the quality of its games and the scale of its portfolio.
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