As reported by Bloomberg Law Portal, Microsoft and Activision Blizzard They have been subpoenaed by lawyers for the Swedish state pension fund, over allegations that the $69 billion takeover was engineered to Take advantage of the crisis resulting from scandals sexually harassed by Irvine in order to close the deal “competitive price” It offers great benefits to both parties.
In lawsuit documents the finger points toward Bobby Kotickthe CEO of Activision Blizzard, and current and former members of the board of directors, are accused of planning a deal with the condition that Kotick remain at the helm of the company at least until the deal closes.
The indictment also states that Activision Blizzard and Kotick were “weak and injured.” Microsoft would have taken advantage of the scandals the company to obtain it at a “competitive price”.
“Microsoft knowingly exploited the harassment scandal and its commercial impact on Activision Blizzard specifically to offer Kotick a way to save his skin,” the documents said. “He conspired with Kotick and the Board of Directors to help them avoid the personal and professional implications of that scandal.”
According to the complaint, the settlement was negotiated by Kotick, who was looking for a way to avoid liability for not acting in accordance with Activision Blizzard’s toxic “fraternity” culture. The CEO has faced a wave of legal and regulatory problems as a result of the scandal, but at the same time he is one of the few directly affected executives who was not affected by the wave of layoffs that followed the scandals.
According to the prosecution, this acquisition was “hastily negotiated”. That would help Kotick evade responsibility It would likely leave him to stay on at his job, bolster his company’s compensation shield, settle claims derived from existing shareholders, and hand him a $400 million payout.
Joe Christinat, a spokesperson for Activision, commented on the suit saying the acquisition “is a great deal for shareholders. We got 98% approval of the votes cast. The Board has gone through an exhaustive process to determine the right move.” for employees, shareholders and players.”
A Microsoft spokesperson told Bloomberg Law that “the proposed acquisition of Activision Blizzard was negotiated lawfully and fairly.”
According to the complaint, although the deal was approved by Activision investors in April, some important details of the deal were not disclosed prior to the vote. This would make completing the merger, which is still awaiting antitrust clearances, a Violation of corporate laws Delaware.
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