A law firm is looking to push a class-action lawsuit against Activision Blizzard, in reference to the sexual harassment complaints lodged against the company.
This July, Activision Blizzard received one of the most controversial lawsuits in recent memory. The state of California filed a complaint against the company for a toxic workplace full of discrimination and alleged sexual harassment.
Now, a group of shareholders is filing another lawsuit. This time, a law firm is lodging a complaint that alleges they suffered losses because ABK failed to disclose the situation.
Lawsuit details losses due to nondisclosure of issues in ABK
In the lawsuit available via Ars Technica, they note that the company filed “false and misleading statements”. They reference the SEC filings done between August 2016 and July 2021, failing to disclose that the company is a hostile workplace for women and POC.
They reference the fact that numerous complaints went to its HR department over years. The lawsuit also questions the nondisclosure of a California Department of Fair Employment and Housing investigation that went on.
Among the defendants include ABK as a corporate entity. Other defendants include CEO Bobby Kotick, CFO Dennis Durkin, and previous CFO Spencer Neumann. Among the complaints include:
- Activision Blizzard discriminated against women and minority employees;
- Activision Blizzard fostered a pervasive “frat boy” workplace culture that continues to thrive
- Numerous complaints about unlawful harassment, discrimination, and retaliation were made to human resources (“HR”) personnel and executives which went unaddressed;
The pervasive culture of harassment, discrimination, and retaliation would result in serious impairments to Activision Blizzard’s operations; - As a result of the foregoing, the Company was at greater risk of regulatory and legal scrutiny and enforcement, including that which would have a material adverse effect;
- Activision Blizzard failed to inform shareholders that the California Department of Fair Employment and Housing (“DFEH”) had been investigating Activision Blizzard for harassment and discrimination;
- Defendants’ statements about Activision Blizzard’s business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
Lawsuit prompted by several events outside ABK
The class-action lawsuit against Activision Blizzard also references several actions outside the original suit itself. In it, they reference how 2000 current and former employees signed a letter condemning the current status of the company.
They also note that the walkout last Friday caused company stocks to fall, causing a loss for investors. ABK shares fell by around 6%, which prompted a response from the company’s management.
The lawsuit against Activision Blizzard, however, is not yet a certified class-action suit at the moment. The law firm, however, notes that potential litigants may stay as an “absent class” member at this point.
Featured image courtesy of Blizzard Entertainment/Youtube Screenshot