New York is suing Activision



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New York is suing Activision

Activision CEO Bobby Kotick hastened to secure a takeover bid from Microsoft to avoid liability for misconduct said an indictment filed by New York City officials against Activision Blizzard, according to Axios. Recall, that months before the deal on Microsoft's acquisition of Activision for $ 68 billion, Kotick was accused of covering up scandals within the company, primarily accusations of se*ual abuse.

Protests, strikes, and lawsuits followed, and Microsoft rushed shopping while the giant was rocked. Shareholders approved the sale of Activision, but it is not over, the biggest challenge for Microsoft follows And while regulators have yet to decide whether to allow Microsoft this huge acquisition at all (investors believe they will not allow it), Kotick has found itself under attack again and is unlikely to bear any more severe consequences.

"He was not allowed to negotiate"

The city of New York, whose pension funds own a number of shares in Activision Blizzard, is requesting documentation from the company about negotiations with Microsoft, including offers from alleged five other potential buyers.

Also, New York City is looking for all the documentation back last fall to reveal how much Kotick actually (didn't) know about se*ual harassment within the company. They believe that on the verge of dismissal, Kotick hurried to sell the company to Microsoft, all in order to avoid responsibility.

“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 says.

“But it wasn’t”. "Worse, despite his potential liability for breaches of fiduciary duty, the Board allowed Kotick himself to negotiate the transaction with Microsoft," the complaint continues. "The Board’s decision to entrust Kotick with the negotiation process is inexcusable for the additional reason that Kotick stands to personally receive substantial material benefits whose value is not directly aligned with the Merger price," it adds.

Kotick told the WSJ at the time that he was “committed to making sure we have the most welcoming, most inclusive workplace in the industry”.