New York pension funds sue Activision Blizzard over Microsoft deal

New York pension funds sue Activision Blizzard over Microsoft deal

The New York State pension fund and the firefighters, police and teachers pension funds have sued Activision Blizzard over its deal with Microsoft.The plaintiffs, who own shares in the company, claim that Bobby Kotick wants to avoid liability for harassment charges through the deal.
They also want access to the company's internal documents, which they believe could expose wrongdoing by Kotick and the board that led to the stock price drop.The suit alleges that Activision Blizzard's board allowed Kotick to negotiate with Microsoft on behalf of the company despite earlier allegations.Last November, Kotick told Microsoft that he agreed to a $90 to $105 price per share.
He did so allegedly without board approval or an actual offer from Microsoft.In January, it became known that Microsoft would buy back Activision Blizzard stock at $95 each.
The deal was valued at $68.7 billion.
The lawsuit also notes that the merger price seriously undervalues Activision Blizzard.The deal with Microsoft reportedly helped Kotick and his colleagues not only avoid liability for breach of fiduciary duties (they are taken by a person performing their professional activities for the benefit of another person), but also receive a number of personal bonuses.Previously, Activision Blizzard recommended that its shareholders vote against preparing an annual public report on what efforts the company makes to prevent harassment and discrimination Activision Blizzard, however, said that preparing the report would be a waste of resources.
Instead, the company suggested \"continuing to respond directly to employee concerns and implement improvements in the workplace.
\"In addition, Activision Blizzard recommended that shareholders vote against a proposal to \"appoint a director to represent employees.\" The annual meeting will be held on June 21.

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