Seven different law firms have launched investigations into Activision Blizzard’s decision to sell itself to Microsoft, over claims Activision’s board decided to sell up in a bid to get away from the sexual discrimination lawsuits facing company.
In a statement announcing its investigation, San Diego law firm Johnson Fistel said: “It appears that the Activision board may have been motivated to sell the Company to Microsoft in order to escape personal liability arising from these lawsuits.”
The law firms are investigating whether the games developer breached its fiduciary duties in agreeing to sell itself to Microsoft for $95 per share, after analysts put out price targets of more than $100 for each share in the firm.
In launching its investigation, Johnson Fistel said it aims to investigate “whether the board obtained the best price possible for Activision shares of common stock.”
The allegations come after the California Department of Fair Employment and Housing filed a lawsuit against Activision in July 2021, which alleged Activision promoted a “frat boy culture” which resulted in female employees experiencing “constant sexual harassment.”
In a statement, the California watchdog said the firm that developed World of Warcraft and Call of Duty “fostered a sexist culture and paid women less than men,” as it claimed that women were “subjected to constant sexual harassment, including groping, comments, and advances.”