A significant development has emerged in the ongoing lawsuit concerning Microsoft’s $69 billion acquisition of Activision Blizzard. Former Activision CEO Bobby Kotick has responded to allegations made by the Swedish pension fund Sjunde AP-Fonden (AP7). The lawsuit, filed in late 2022 in Delaware’s Court of Chancery, claims that Kotick hurried the sale to evade repercussions from sexual misconduct scandals within the company.
Details of the Lawsuit
The AP7 fund aims to transform its lawsuit into a class action. They are also advocating for additional payments for shareholders, alongside efforts to annul the merger deal. Defendants in the suit include Microsoft, Activision Blizzard, and its previous board members, notably Kotick.
Kotick’s Defense
In a court filing made public recently, Kotick disputes the claims laid out by AP7. His document, termed an official “Answer,” doesn’t merely refute the accusations. Instead, it seeks to assign responsibility for the scandals and subsequent negative publicity. Kotick suggests that the Embracer Group, known for titles such as Tomb Raider and Dead Island, may have a hidden agenda with this lawsuit.
Accusations Against Embracer Group
- Kotick’s filing describes Embracer as a potential ally of the plaintiffs.
- He asserts that the lawsuit may assist Embracer in strengthening its position in California, adversely affecting Activision.
- This could hamper Activision’s growth and recruitment efforts within the industry.
Embracer’s Response
In response to Kotick’s claims, Embracer has categorically denied any involvement. They emphasized that they do not require assistance from any external party to compete with Activision. This response can be viewed as a direct rebuttal to Kotick’s implications concerning their role in the lawsuit.
Conclusion
The ongoing legal battles surrounding the Microsoft-Activision deal continue to evolve. With allegations flying between Kotick and Embracer, the outcome remains uncertain. It is a pivotal moment for both companies and the broader gaming industry.
