Microsoft Activision deal leads to trial in Sweden
The Microsoft Activision act is facing a legal challenge in Sweden where a state pension fund has sued both companies over the proposed merger. According to Bloomberg Law, the 205-page complaint alleges that Activision’s CEO Bobby Kotick and the company’s board members planned to sell Activision Blizzard to cover their tracks after the embarrassment sexual harassment and misconduct in the workplace accusations.
Microsoft Activision deal ‘exploits’ Activision scandal
The class action was filed earlier this month and appears to have flown under the radar until now. It alleges that after the high-profile scandal involving Activision and its CEO Bobby Kotick, Microsoft decided to take advantage of the situation by making an offer that would allow Kotick – and the board members who helped him – to escape unscathed. The complaint, read by Bloombergalso states that Microsoft’s $69 billion purchase is “underpriced.”
“Microsoft knowingly used the harassment scandal and its commercial influence over Activision precisely to offer Kotick a way to save his own skin,” the filing states. “It conspired with Kotick and the board to help them avoid the personal and professional consequences of that scandal.”
Microsoft and Activision, for their part, have denied the allegations and claim the deal was conducted legally.