Activision Blizzard faces another lawsuit stemming from a lawsuit filed in July by the California Department of Fair Employment and Housing, alleging widespread discrimination, sexual harassment and a "frat frat" culture throughout the world. company. A bit confusing, this new action, available through Ars Technica, is not being filed on behalf of employees, but of shareholders who have allegedly suffered losses because Activision Blizzard did not disclose that it was investigating.
The lawsuit, which names Activision Blizzard as a company, as well as CEO Bobby Kotick, chief financial officer Dennis Durkin and former chief financial officer Spencer Neumann as individual defendants, alleges that the company made "false and misleading statements" between August 4, 2016 and July 27. , In 2021, at the SEC's requests that the company did not disclose, it was actually a hostile workplace for women and minorities, who over the years had filed numerous complaints with the his human resources department and that, as a result, DFEH had initiated an investigation.
"As a result, the defendant's statements about Activision Blizzard's business, operations and potential customers were materially false and misleading and / or did not have a reasonable basis at all relevant times," the demand.
The lawsuit also states that since the DFEH action was filed, there are more than 2,000 current and former employees. signed a letter condemning the company’s initial response to the lawsuit and that plans for a tender were announced on July 27th. As a result, shares of Activision Blizzard fell more than 6% on the same date, causing losses to investors who bought shares of the company at "artificially inflated" prices due to misleading statements by the company. executive and company.
"If the plaintiff and the other members of the class had been aware that the market price of the Activision Blizzard securities had been artificially and falsely inflated by the defendants' misleading statements and material adverse information that the defendants did not disclose, they wouldn’t have bought Activision Blizzard stocks at the artificially inflated prices they were making, or at all, ”the lawsuit says. "As a result of the illegal conduct alleged here, the plaintiff and other members of the class have suffered damages for an amount to be established during the trial."
The lawsuit has not been certified as a class action lawsuit at this time, and Rosen's law firm warned that until it is, no one applying to join the class really has no representation. legal in the matter unless he hires his own lawyers independently. However, there is currently no obligation to participate: potential litigants "may also be absent from class and do nothing at this time," the law firm said. It also consists of retention agreement which can be applied to claim up to 33.3% of any amount recovered in the case, "plus disbursements" (including travel expenses, legal aid expenses and more) that will be claimed first.
Interestingly, while Activision Blizzard employees weren’t very happy with today’s second-quarter financial report statements and so-called investments, the market seems more impressed. The company's share price returned to nearly $ 85 in after-hours transactions, up 6.29%.