Activision Blizzard are facing a second punishing lawsuit – this time from investors
Activision Blizzard are facing a second lawsuit on behalf of investors alleging that the company’s stock value has been artificially inflated.
That inflation is as a result of the company failing to disclose its ongoing issues with harassment and abuse – had these been known, investors would not have invested in stock.
A lawsuit has already been filed against Activision Blizzard by the California Department of Fair Employment and Housing for the company’s “frat boy” workplace culture and harassment of women.
Since the news of that lawsuit broke, company stock prices have been slowly declining.
The second lawsuit covers anyone who has traded in Activision Blizzard securities since August 2016, owing to a SOX certificate that’s legally required to be published annually on potential legal issues.
CEO Bobby Kotick signed off on the 2016 certificate but failed to disclose information on harassment.
Meanwhile, employees have issued a new statement again criticising leadership for their response to the lawsuit.
It specifically calls out Kotick’s lack of “meaningful” progress following his public statement, as well as his decision to hire a union-busting firm for the company’s internal review.
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“You said you would do everything possible to work with employees in improving our workplace,” wrote ABK Workers Alliance to Kotaku. “And yet, the solutions you proposed in that letter did not meaningfully address our requests. You ignored our call for an end to mandatory arbitration. You did not commit to adopting inclusive recruitment and hiring practices. You made no comment on pay transparency.”
ABK Workers Alliance were responsible for the employee walkout in protest against leadership.
“We call on you and your executive leadership team to do better, and to fully address our list of demands. We will not abandon our cause. Our ranks continue to grow across multiple Activision Blizzard studios,” reads the statement, before outlining several employee-led initiatives.
The latest Activision Blizzard statement shared the news that head of Blizzard J. Allen Brack would be stepping down from his role at the studio.