Activision Blizzard Legal Battle: Shareholders vs. Kotick

A Delaware judge has ordered that former Activision Blizzard executives, including CEO Bobby Kotick, face most allegations in a shareholder lawsuit tied to Microsoft's $75.4 billion purchase of the video game giant. The ruling allows shareholders to pursue claims that Kotick and other directors breached their fiduciary duties.

Led by Swedish pension fund Sjunde AP-Fonden, shareholders allege Kotick hurried the deal to secure his job and $400 million in change-of-control benefits. They argue the initial $95 per share deal undervalued Activision, particularly as its fortunes improved throughout the merger's lengthy approval process, which concluded in October 2023.

While dismissing claims against Microsoft, the court found evidence suggesting Activision directors favored a swift sale to Microsoft due to Kotick's interests. Microsoft's spokesperson expressed confidence in disproving the remaining claims, while the shareholders' lawyers have not commented. The case is ongoing in Delaware Chancery Court.

(With inputs from agencies.)