Judge Allows Activision Shareholder Lawsuit Against Kotick Over Microsoft Deal
A Delaware judge has ruled that former Activision Blizzard officials, including CEO Bobby Kotick, must face a lawsuit alleging they breached their fiduciary duties to shareholders during the Microsoft 365 acquisition. The lawsuit claims Kotick rushed the merger to secure his job and $400 million in change-of-control benefits, and to avoid harassment claims. The takeover price of $95 per share is also under scrutiny.
The judge dismissed two claims against Microsoft, including allegations that it aided and abetted the alleged breaches. However, the judge noted that Microsoft may have 'passively stood by' while the breaches occurred. The case will now proceed to litigation on the merits, with a 'trimmed-down' version of the shareholders' complaint.
The judge found sufficient allegations that Kotick manipulated the sale process to favor Microsoft 365, prioritizing speed and certainty over price. It is reasonably conceivable that Activision directors put Kotick's interests ahead of shareholders', allowing a low takeover price while harassment concerns depressed the stock. To find the exact names of the defenders in the process, one should consult official court documents or press releases from the Delaware Chancery Court.
The lawsuit alleges that Kotick and other directors breached their fiduciary duties by rushing the merger and accepting a low takeover price. The case will now proceed to litigation, with the judge finding sufficient evidence to support these claims. The names of the defenders in the process can be found in official court documents or press releases.
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