Activision Sued Over Share Deal
Kotick and insiders to make a 'staggering windfall' claims unhappy Activision stockholder
Activision CEO Robert Kotick's plan to buy Activision/Blizzard out of its partnership/ownership with Vivendi for nearly six billion dollars has run into a problem with one of Activision's own shareholders.
As we reported, Activision/Blizzard has made a share buyback bid from it owners that would leave the Call of Duty makers free to pursue its own strategies. Well, a shareholder called Todd Miller has filed a suit in the USA that basically states that the only people benefiting from the deal are Kotick and his team.
Courthouse News reports that, "Todd Miller filed a shareholder derivative complaint in Superior Court against Activision, its 11-man board of directors, and Vivendi, the entertainment and publishing conglomerate, alleging breach of fiduciary duties, waste of corporate assets and unjust enrichment." That's pretty big stuff.
It gets a bit bigger still when you read that the filing states, "Upon closing of the deal, the insider investor group will become the company's largest shareholder, holding approximately 172 million shares, or approximately 24.9 percent of the outstanding common stock."
Source: Courthouse News
As we reported, Activision/Blizzard has made a share buyback bid from it owners that would leave the Call of Duty makers free to pursue its own strategies. Well, a shareholder called Todd Miller has filed a suit in the USA that basically states that the only people benefiting from the deal are Kotick and his team.
Courthouse News reports that, "Todd Miller filed a shareholder derivative complaint in Superior Court against Activision, its 11-man board of directors, and Vivendi, the entertainment and publishing conglomerate, alleging breach of fiduciary duties, waste of corporate assets and unjust enrichment." That's pretty big stuff.
It gets a bit bigger still when you read that the filing states, "Upon closing of the deal, the insider investor group will become the company's largest shareholder, holding approximately 172 million shares, or approximately 24.9 percent of the outstanding common stock."
Source: Courthouse News
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