Activision Blizzard Shareholders Launch Class Action
Activision Blizzard shareholders are launching a a proposed class-action lawsuit, arguing that they were “economically damaged” by the recent harassment allegations that are rocking the company and its fortunes.
The class-action complaint, filed in a California Federal Court, names Activision Blizzard CEO Bobby Kotick, current CFO Dennis Durkin, and former CFO Spencer Neumann who is claims were “aware of or recklessly disregarded the fact that the false and misleading statements were being issued concerning the Company.”
Activision Blizzard received “numerous complaints about unlawful harassment, discrimination, and retaliation [that] were made to human resources (“HR”) personnel and executives which went unaddressed,” according to the complaint.
The suit claims “the pervasive culture of harassment, discrimination, and retaliation would result in serious impairments to Activision Blizzard’s operations.”
This leads to a company share price that is “artificially inflated”, as the company failed in its duty to tell shareholders it was under investigation by the California DFEH and therefore “at greater risk of regulatory and legal scrutiny and enforcement” in the future.