The Lawsuits Keep Piling Up For Activision Blizzard
The shady side of Activision Blizzard has been front and center lately, with the company facing some serious allegations in a recent lawsuit, including claims of sexual harassment and a toxic work culture. Now, another lawsuit has been filed against the company as a result, this time by the company's investors.
The Rosen Law Firm filed a lawsuit on August 3 on the behalf of investors in the company, which includes anyone who's traded Activision Blizzard stock between August 4, 2016 and July 27, 2021. Essentially, the lawsuit argues that the gaming giant withheld information from investors that could have (and indeed did) impact business.
As explained by Kotaku, as a company with stocks that can be publicly traded, Activision Blizzard is required to sign an annual SOX certification . This certification is to help those who've invested in a company know what's happening internally. Activision Blizzard has released a near-identical SOX certification every year since 2016, stating that there's nothing abnormal happening within the company, and that nothing has occurred internally that could impact Activision Blizzard financially. Of course, since the lawsuit regarding the company's toxic workplace culture was filed, "World of Warcraft" has essentially halted development and a large number of Activision Blizzard employees have begun protesting against the company.
So what does the new lawsuit have to say about the actions of Activision Blizzard leadership, and what could be next for the people involved?
Activision Blizzard's newest legal battle started in 2016 with then-CEO Robert Kotick
When it comes to the claims in this latest lawsuit, It's important to note that CEO Bobby Kotick and former CFO Dennis Durkin both signed off on these certifications, as noted by Kotaku. These two, along with former CFO Spencer Neumann, are specifically named in the new suit.
The new lawsuit makes the argument that Activision Blizzard's SOX certificates were signed by people who knew that problems existed that could have impacted business, meaning these SOX statements were providing false proof that the company was operating just fine. Now, investors could be looking at getting back potential losses from these internal issues.
In the midst of everything, surprising decisions are being made about Activision Blizzard's leadership. Blizzard president J. Allen Brack stepped down, while Bloomberg reports that the company's head of HR has also left the company. Hopefully, this means more positive changes could be on their way for the beleaguered employees within the company.