Activision Blizzard Shareholders Sue In Attempt to Stop Microsoft Purchase

gamerant.com:

Though the story of Microsoft acquiring Activision Blizzard may have left the 24-hour news cycle, it has continued to develop in the background, with new details coming out at a brisk pace. The latest development is, in fact, particularly interesting, as several Activision Blizzard shareholders are now suing the company and its board of directors.

While Microsoft is yet to chime in on the matter, two Activision Blizzard shareholders have already brought up lawsuits against the company, with the main argument being that it hadn't disclosed all details pertinent to the acquisition. Simultaneously, Activision Blizzard CEO, Bobby Kotick, is getting investigated by the Securities and Exchange Commission (SEC), and there's the planned Federal Trade Commission (FTC) review adding even more hoops for Microsoft to jump through.

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According to Kyle Watson — the shareholder who filed the first lawsuit against Activision Blizzard — the company's sale plan is unfair towards shareholders and designed specifically to hide the apparent fact that the board of directors is looking to procure «significant and immediate benefits.» Indeed, Bobby Kotick himself is receiving a massive payout as part of the sale, as well as the potential «golden parachute» package if he gets removed from his position before his contract is up.

Watson's lawsuit claims that the sale leads to a major conflict of interest, whereas the deal may not be in the best interest of shareholders other than the Activision Blizzard board of directors. Watson also claims that Activision Blizzard has failed to include all key information as part of its submission to SEC and that it is violating the Securities Exchange Act in doing so.