Activision Blizzard is being sued by the New York City Employees’ Retirement System (NYCERS) and pension funds over its imminent sale to Microsoft.
According to a report by Axios, the lawsuit was filed last week because the group believes Activision Blizzard is eager to address current legal issues. The New York City government, which owns the company’s stock, said in the lawsuit that the deal hurt the company’s value.
The group said Microsoft’s $95-a-share offer undervalued the company, as Activision Blizzard’s stock traded near its price before news of rampant workplace harassment and discrimination came to light.
The lawsuit requires the company to turn over various documents related to the proposed acquisition, as well as documents Activision Blizzard claims to have received in a filing with the U.S. Securities and Exchange Commission about the Microsoft acquisition.
In addition, New York wants to see the documents to sue the company’s CEO Bobby Kotick and board members, especially for their attempts to strike a deal with Microsoft.
“Given Kotick’s personal responsibilities and obligations to Activision’s broken workplace, it should be clear to the board that he is not fit to negotiate a sale of the company,” the lawsuit states.[The deal allows] Kotick and his fellow directors were a means of evading responsibility for their gross breach of fiduciary duty. “
Asked for comment, an Activision representative told GI.biz that the company “agreed with the allegations made in this complaint” and looked forward to presenting its arguments to the court.
Activision Blizzard also faces a lawsuit from a current employee who claims to have faced discrimination and sexual harassment at the company. The employee also said in the lawsuit that they were retaliated against for speaking out in public.
There are also lingering issues with the California Department of Fair Employment and Housing, as well as lawsuits brought by families of deceased employees and investors. The SEC is also investigating the company over its response to workplace concerns.
