Activision Blizzard Faces Shareholder Lawsuit Over Harassment Issues


by in General | Aug, 4th 2021

Activision Blizzard’s issues aren’t over yet, as a shareholder lawsuit came to light based on false statements by the company. This lawsuit covers any person who has traded in Activision Blizzard securities between August 4th, 2016, and July 27, 2021. As it turns out, a company can’t mislead its shareholders constantly and expect zero consequences. The shareholder lawsuit alleges that Activision Blizzard did not disclose the sexual harassment issues the company was having. The investors state that if they had known about these kinds of problems, they would not have invested in the first place.

Statements about Activision Blizzard harassing employees have been around the internet for years. A simple Google or Twitter search would have surely enlightened these investors.

Big Names Are Named in Latest Lawsuit:


Activision Blizzard has been steadily losing money when it comes to its stock value, and the investors claim the value has been artificially inflated. By not disclosing the sexual harassment and discrimination issues plaguing the company for years, Activision Blizzard misleads many a shareholder, leading to the lawsuit. The Rosen Law Firm in Los Angeles is filing this class action lawsuit on behalf of any investors between the above dates. In fact, this was revealed the same day as the Q2 earnings call for Activision Blizzard. 

Some seriously major names are named in the Activision Blizzard shareholder lawsuit too. Activision Blizzard as a corporate entity is just the tip of the iceberg. Bobby Kotick (CEO), Dennis Durkin (CFO), and Spencer Neumann (Former CFO). Three other executives were also named as being key to spreading false information and misleading the investors. Companies are required to release what’s known as a SOX (Sarbanes-Oxley Act of 2002) Certification that discloses any and all legal issues, investigations, audits, or anything of that nature. 

Back in 2016, Bobby Kotick and Dennis Durkin declared the following:

We are party to routine claims, suits, investigations, audits, and other proceedings arising from the ordinary course of business, including with respect to intellectual property rights, contractual claims, labor and employment matters, regulatory matters, tax matters, unclaimed property matters, compliance matters, and collection matters. In the opinion of management, after consultation with legal counsel, such routine claims and lawsuits are not significant and we do not expect them to have a material adverse effect on our business, financial condition, results of operations, or liquidity.

According to the lawsuit, Activision Blizzard was well aware of the sexual harassment and discrimination going on in the company at this time. Activision Blizzard chose to leave this out of the statement. We’ve seen over the last few weeks, thanks to a major lawsuit, and the statements of employees over the years, that this is not at all true. Frankly, it kind of sounds like an open-and-shut case, but we aren’t legal experts. 

Activision Blizzard has been home to sexual harassment for several years, and the shareholder lawsuit states that had they known about these problems, investments would not have been made into the company. 

Comments


Leave a Reply