In a proposed class-action lawsuit, Activision Blizzard shareholders argue that they were “economically damaged” by company executives withholding information and allegations that have recently come to light through a California Department of Fair Employment and Housing (DFEH) discrimination and harassment lawsuit against the company.
The class-action complaint, filed in a California Federal Court by the Rosen law firm, specifically names Activision Blizzard CEO Bobby Kotick, current CFO Dennis Durkin, and former CFO Spencer Neumann. Those executives and others were “aware of or recklessly disregarded the fact that the false and misleading statements were being issued concerning the Company,” according to the complaint.
To support that claim, the lawsuit cites multiple SEC filings Activision Blizzard made from mid-2016 onward. Those filings included boilerplate language regarding the risks to the business imposed by various legal matters. Activision Blizzard said that “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,” the suit says.