A Delaware judge has ruled that former Activision Blizzard officials, including CEO Bobby Kotick, must face the majority of a shareholder lawsuit alleging they undervalued the company in its $75.4 billion sale to Microsoft. The ruling, from Chancellor Kathaleen McCormick of the Delaware Chancery Court, allows the core claim that Activision's directors breached their fiduciary duties to proceed. Shareholders in the proposed class-action suit argued that Kotick expedited the merger to secure his job and personal benefits while insulating himself from ongoing claims of widespread sexual harassment at the company. The decision found sufficient allegations that the sale process was manipulated in favor of Microsoft, which offered "speed, deal certainty, and--inferably a friendly landing place." While the case against former Activision leadership will move forward, the judge dismissed two claims that had been filed against Microsoft itself.
Delaware Court Rules Former Activision Officials Must Face Lawsuit Over Microsoft Takeover
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