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Activision Sued By Shareholder

By Fr33Lanc3r.00706-08-2013

Activision-Blizzard has been appearing in the news quite a lot recently, with all that drama with majority shareholder Vivendi's financial issues and the subsequent buyout of their shares, and then Blizzard's laying off of staff for various reasons, and in the latest reports it seems that the drama is continuing. According to Courthouse News, Activision shareholder Tom Miller has filed "a shareholder derivitive complaint (read: lawsuit) against Activision, it's Board of Directors, and Vivendi...alleging breach of fiduciary duties, waste of corporate assets and unjust enrichment."

It seems that Bobby Kotick's investment group is a party to the sale of Vivendi's share of Activision's stock, and from their part of the deal they'll end up with the largest share of the common stock, much of which they'll have gained at a 10 percent discount on the current price of Activision's shares. The result of this, according to Miller, will not benefit Activision at all, other than "to aggrandize defendants Kotick and Kelly and provide billions of dollars' worth of Activision stock to the insider investor group at a discounted price," the result of which is that Kotick - and fellow Board Member Brian Kelly - will be able to entrench themselves in positions of power at Activision's head.

It almost reads like a conspiracy theory, but Miller's lawsuit is going ahead, asking the courts to undo the buyout and order Activision to institute controls to "prevent future one-sided self-dealing." We'll keep you updated as the case progresses.

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Posts: 3290

So he's suing them for...something that made his shares more valuable?