New York authorities are trying to hold Bobby Kotick accountable through the courts

New York authorities are trying to hold Bobby Kotick accountable through the courts

A new lawsuit accuses Activision Blizzard CEO Bobby Kotick of rushing to sell to Microsoft to avoid legal liability in connection with allegations of sexual misconduct made last summer.The complaint was filed April 26 by the New York City Employees Retirement System, a pension fund for city teachers, firemen and police officers.
The city owns a significant amount of Activision stock and believes the value of that stock has suffered in no small part because of the allegations.In its complaint, New York City demands a list of documents and materials related to the Microsoft deal, including information about the five possible buyers mentioned in the official description of the sale negotiations, one of which could be EA.
In the lawsuit, the city admits it wanted access to Activision's books in order to sue Kotick and Activision Blizzard's board of directors over value lost to the company after numerous reports of sexual misconduct.Last summer, the California Department of Fair Employment and Housing filed suit against Activision Blizzard over alleged \"bro culture\" and a toxic work environment, including multiple allegations of gender discrimination, harassment and even one case where an employee ended Activision Blizzard denied the allegations, and a report by The Wall Street Journal soon followed, accusing CEO Bobby Kotick of not only tolerating a toxic work culture at the company, but sometimes even promoting it.Activision Blizzard's stock price plummeted after months of repeated scandals, followed by a crackdown on employees who tried to unionize.
Microsoft eventually offered Activision Blizzard $95 a share as part of a purchase agreement, an amount that New York believes the company undervalues.
As of this writing, Activision Blizzard stock is valued at $79.
\"Given Kotick's personal responsibility for Activision's trashed workplace, it should have been clear to the board that he had no right to negotiate the sale of the company,\" the complaint says.
The court documents also say the sale gives \"Kotick and his fellow directors an opportunity to escape liability for egregious breaches of fiduciary duty.
\"Activision has not yet responded to the complaint.
Kotick's future as CEO of Activision Blizzard remains uncertain after reports that Microsoft has yet to discuss his employment after the sale is completed next year.

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