With Activision Blizzard already suffering from the bad publicity brought on by a lawsuit from the State of California and the employee walkout and protest that has followed, the company has been served another lawsuit by its investors.
The lawsuit is being brought on by Rosen Law Firm, the same law firm that was involved in suing CD Projekt Red over the embarrassing launch of Cyberpunk 2020, claims that the CEO of Activision Bobby Kotick as well as CFO Dennis Durkin and former CFO Spencer Neuman made misleading statements about the quality of the company in regards to its hostile work environment for women.
With the stock prices for Activision Blizzard slowly declining, the lawsuit claims that these higher-ups at the company knew of the issues and broke legal obligations by not informing potential investors of them. Essentially, they claim that Activision Blizzard tricked investors into putting their money into the company.
In previous SOX certifications spanning from 2016 to the present, the company had claimed the only lawsuits it expected to face were routine ones involving things like intellectual property rights and tax matters. This lawsuit being far beyond that scope, it is possible that potential investors in the company — which includes anyone that traded Activision Blizzard securities between August 4, 2016 and July 27, 2021 — will be able to collect significant damages.