It looks like Activision Blizzard‘s legal woes have only just begun. A class-action complaint filed by the Rosen Law firm on behalf of shareholders states that the company’s executives continued to make false and misleading statements, and failed to disclose that it was under investigation for discrimination and harassment by California Department of Fair Employment and Housing (DFEH), which ultimately resulted in a lawsuit.
The complaint notes that over the years, Activision Blizzard repeatedly told investors that it deals with various legal claims and lawsuits on a routine basis, and they have no impact on business whatsoever. However, DFEH’s lawsuit is no small matter, and the explosive reports that have since surfaced online and in the news have caused Activision Blizzard’s share price to fall, resulting in losses for shareholders.
Activision Blizzard received “numerous complaints about unlawful harassment, discrimination, and retaliation” that were made to “human resources personnel and executives, which went unaddressed,” reads the complaint. “The pervasive culture of harassment, discrimination, and retaliation would result in serious impairments to Activision Blizzard’s operations.”
Shareholders claim that Activision Blizzard “artificially inflated” its share price by not disclosing the investigation and the seriousness of the potential lawsuit. CEO Bobby Kotick, current CFO Dennis Durkin, and former CFO Spencer Neumann are specifically named as defendants.
After making tone deaf statements, Activision Blizzard announced the departure of J. Allen Brack. However, it’s little consolation in light of the fact that Kotick and his crew are currently facing no repercussions for their roles in the fiasco.
[Source: Ars Technica]
