Activision Blizzard is being sued by New York City over the Microsoft buyout deal
The suit alleges the deal was rushed due to the company's current troubles.
Activision Blizzard is being sued by the New York City Employees’ Retirement System (NYCERS) and pension funds over the impending sale of the company to Microsoft.
According to an Axios report, the suit was filed last week over what the organization feels is a rush job by Activision Blizzard to get past its current legal troubles. The NYCERS, which owns stock in the company, states in the suit the deal hurt the company's value.
The organization states the $95/share offer from Microsoft undervalues the company, as Activision Blizzard stock was trading at close to that before news of rampant workplace harassment and discrimination were brought to light.
The suit demands the company turn over various documents pertaining to the proposed aquisition, as well as documents related to five other possible buyers Activision Blizzard claimed it had received in an SEC filing regarding the Microsoft buyout.
Furthermore, New York wants to look at the documents in order to sue company CEO Bobby Kotick and board members specifically for trying to rush the deal with Microsoft.
"Given Kotick’s personal responsibility and liability for Activision’s broken workplace, it should have been clear to the Board that he was unfit to negotiate a sale of the Company,” the suit states. "[The deal allows] Kotick and his fellow directors a means to escape liability for their egregious breaches of fiduciary duty.”
When reached for commentm an Activision representative told GI.biz the company diagreed "with the allegations made in this complaint," and that it looked forward to presenting its arguments to the Court.
Activision Blizzard is also being faced with a lawsuit filed by a current employee who claims to have faced discrimination and experienced sexual harassment at the company. The employee also states in the suit they were retaliated against for speaking out.
There's also the lingering issue with the California Department of Fair Employment and Housing, and a lawsuit filed by family members of a deceased employee and investors. The company is also being investigated by the SEC over the company's response to workplace issues.