New York City is suing Activision, alleging that CEO Bobby Kotick was "unfit to negotiate the sale of the company" and that the Microsoft deal was rushed to allow Kotick and other board members to evade "responsibility for misconduct."
As reported by Axios, a new lawsuit from the New York City Employee Pension System and pension funds for the city's teachers, police and firefighters was filed in Delaware on April 26. Each group owns a stake in Activision and claims that Kotick's actions are "harming the company's economy."
New York City is requesting several documents regarding the Microsoft deal, other buyers, and more. The city claims that Kotick is ineligible to negotiate the sale of Activision as it was already in the spotlight during the negotiation period. The groups claim that the Microsoft deal allowed Kotick and other board members to "evade liability for a gruesome breach of fiduciary duty." The lawsuit also alleges that Microsoft's offer of $95 per share "underestimates the company."
This is the last of several cases involving Activision Blizzard. Last summer, the company faced a lawsuit from the California Department of Fair Employment and Housing over allegations of sexual misconduct and employee maltreatment. Activision also recently settled with the US Equal Employment Opportunity Commission (EEOC) for $18 million over allegations of sexual harassment, gender-based discrimination and retaliation.
A public version of the case is original In the Axios report can be found.