A Delaware Chancery Court judge has ruled that most claims in a shareholder lawsuit against former Activision Blizzard officials, including Chief Executive Bobby Kotick, may proceed. The lawsuit alleges that these officials breached their fiduciary duties and shortchanged shareholders during Microsoft’s $75.4 billion acquisition of the game developer.
In an 83-page decision, Chancellor Kathaleen McCormick found sufficient allegations suggesting that Kotick manipulated the sale process to favor Microsoft and that other Activision directors potentially prioritized Kotick’s interests over those of shareholders. These interests allegedly included allowing a lower acquisition price at a time when Activision’s stock value was depressed by concerns over workplace harassment. While two claims against Microsoft were dismissed, along with some other claims against Activision defendants, the ruling allows the core allegations of the complaint to move forward to litigation on the merits.
A spokesperson for Microsoft stated that the company believes the remaining claims will be disproved, asserting that the acquisition was “fairly negotiated and delivered great value to Activision’s shareholders.”
Source: https://indianexpress.com/article/technology/tech-news-technology/activision-officials-must-face-claims-over-microsoft-takeover-judge-rules-10300538/