Activision Blizzard shareholder class action suit resolved
Activision Blizzard bought itself from former parent company Vivendi last year, which didn't please every shareholder, but the consequent class-action lawsuit has now been settled.
The publisher announced today that it has reached a settlement agreement in which "multiple insurance companies, along with various defendants, will pay Activision Blizzard $275 million".
Additionally, two unaffiliated company directors will be named, voting rights will be adjusted, all claims against the defendants will be dropped and the plaintiff's legal fees and costs will be paid.
"The Company believes the settlement, which acknowledges no wrongdoing by any party, is in the interest of all stakeholders," Activision Blizzard said in a press release.
"The transaction, structured through the efforts and significant personal investment of Bobby Kotick and Brian Kelly, has contributed to the creation of over $3 billion of value for shareholders. We are pleased to be able to put this matter to rest," the Board of Directors said in a statement.
Last year CEO Bobby Kotick and Chairman Brian Kelly led an investor group which purchased 88% of Vivendi's stake in Activision Blizzard, freeing it from the French conglomerate's control.
Shareholders responded with a class-action lawsuit based on allegations that the buyback was "breach of fiduciary duties, waste of corporate assets and unjust enrichment" brought about by a conflict of interest related to members of both companies' boards.