A major video game company faces multiple lawsuits
Activision Blizzard, a prominent video game publisher, is currently embroiled in escalating legal battles involving both the state of California and its own employees. Following a two-year investigation that uncovered widespread reports of severe instances of sexual and power harassment within the company, the California Department of Fair Employment and Housing filed a lawsuit to hold Activision Blizzard accountable. Concurrently, employees have been staging protests and walkouts to address these pressing issues. The failure to address these workplace violations not only raised ethical concerns but also financial repercussions for the company.
A group of Activision Blizzard investors has now initiated a second lawsuit against the company in the US District Court of Central California. They allege that the company’s decision to withhold information about the two-year investigation and its outcomes constituted a deliberate act of misinformation aimed at investors. Had the investors been aware of the severity of the situation, they might have reconsidered their investments.
Investors who held Activision Blizzard securities between August 4, 2016, and July 27, 2021, are eligible to participate in the lawsuit, which seeks damages from the company for issuing false and deceptive statements. The lawsuit specifically names the company’s CEO Bobby Kotick, CFO Dennis Durkin, and former CFO Spencer Neumann as defendants.
The class action lawsuit alleges that Activision Blizzard misled investors by not disclosing the issues with its workplace culturehttps://t.co/cKiS4pHJzO
— GamesIndustry (@GIBiz) August 4, 2021
Following the initial lawsuit’s announcement, Activision Blizzard’s stocks have taken a hit amidst continuous revelations about its toxic workplace environment. Investors are growing increasingly discontented with the company’s lack of transparency and decision-making. If the second-quarter earnings fail to demonstrate any substantial improvements, the company risks facing a significant loss of investor confidence.
