A pension fund charges Bobby Kottick with trying to avoid his fiduciary responsibilities.
Since the summer, Activision Blizzard has faced accusations of promoting a discriminatory and toxic work culture for women at his workplace, allegations that reached a fever pitch after the release in the fall of a report that put the spotlight squarely on CEO Bobby Kottick, causing the company’s stock to lose much of its stock market value . Now, a pension fund is taking matters into its own hands and questions its sale to Microsoft.
The New York State Common Retirement Fund, which brings together the retirement plans for public employees in New York, presented a few days ago a lawsuit against Activision Blizzard demanding a long list of documentsincluding material related to the 69,000 million agreement with Microsoft, as well as the rest of those interested in buying the company advanced by the board, concerned about the suitability of Bobby Kotick and his board to ensure the interests of investors.
The Board was not in a position to negotiate the sale of the companyNY FoundationAs we read in Axios, these claims are reported several months in the past, when unsuccessful attempts were made to ascertain the extent to which Boby Kottick and his board were aware of allegations of sexual misconduct at the company reported in the press. Its objective was to find pretexts to launch a complaint against all of them for having, supposedly, reduced the stock market value of the company. But these plans went to waste after the announcement of the sale of the aforementioned video game company.
“Given Bobby Kottick’s personal and passive responsibility in fracturing the workplace, it should have been clear that the Board was not in a position to negotiate the sale of the company,” the fund states in its complaint collected by Axios. The lawsuit states that said agreement allows the still executive director of Activision-Blizzard to avoid responsibility for his flagrant breaches of fiduciary dutywhile undervaluing the company based on their estimates.
In short, one more open front by Activision-Blizzard, which are not few as they remember from the information portal. His journey remains to be seen. At the moment the bulk of the shareholders gave their ok to the sale operation a few days ago, now it remains to overcome the iron regulatory control of the United States, China and Europe.
More about: Activision Blizzard, Complaints and Bobby Kotick.