Activision Blizzard is facing even more legal trouble as a class-action complaint has been filed by the Rosen Law firm on behalf of shareholders. The lawsuit states that the company’s executives continued to make false and misleading statements, and failed to disclose that it was under investigation for discrimination and harassment by California Department of Fair Employment and Housing that resulted in a lawsuit. The complaint also noted that Activision Blizzard had repeatedly told investors that it deals with various legal claims and lawsuits on a routine basis, and they have no impact on business whatsoever.
Because the DFEH lawsuit is such a serious matter and also with the large number of explosive reports that have since surfaced about the culture of the company, Activision Blizzard’s share price has fallen significantly resulting in losses for shareholders. Shareholders are now claiming that Activision Blizzard artificially inflated the share price by not disclosing the investigation and the seriousness of the potential lawsuit. Those Named as defendants include CEO Bobby Kotick, current CFO Dennis Durkin, and former CFO Spencer Neumann.