Facing legal battles on multiple fronts, Activision Blizzard won the controversy by rejecting a shareholder lawsuit filed by a federal judge alleging the company misled them by downplaying the potential spread of sexual harassment and discrimination against female employees.
On Tuesday, US District Judge Percy Anderson ruled that investors could not point to specific misrepresentations made by the company and that it was not his duty to disclose the investigation to three separate government agencies. Anderson wrote that the shareholders “offer a speculative conclusion about the defendant’s behavior without sufficient detail to draw a strong conclusion” about his intent to deceive.
Activision Blizzard shareholders claimed that sexual harassment and gender discrimination were endemic at the company, especially at Blizzard Entertainment, and that it failed to detect the misconduct despite the California Department of Fair Employment and Housing Opportunity Commission. Equal Employment and Self Employed. . They cited statements from securities regulators that the company was only a “routine investigative party” and codes of conduct that indicated it would not tolerate harassment, retaliation or discrimination.
Anderson concluded that the investors “did not provide sufficient evidence to substantiate the falsehood” because they “examined the long-term material” of the DFEH and EEOC claims that did not sufficiently prove that Activision Blizzard deceived them and intended to defraud them.
Among the reasons for the dismissal was that Activision Blizzard was not required to inform shareholders about federal and state investigations, the judge ruled.
Under securities law, the company is required to disclose disputes from government agencies. But Anderson found that ძ Collection of duty The manufacturer was not required to disclose federal or state investigations as they were not technically a legal process.
The financial information that the shareholders mentioned in their complaint was filed with the DFEH and the EEOC formally processed.
Anderson also said that Activision Blizzard is not responsible for promoting general business ethics, especially as the SEC requires such statements. In order for such a claim to be enforceable, the judge wrote that the company would not have to “take any action in light of the obvious and pervasive violations of its code.”
“According to the records, it doesn’t look like this,” the warrant reads.
Activision Blizzard revealed on April 15 that it was cooperating with a Justice Department lawsuit against a suspected person, which may have been facilitated by CEO Bobby Kotik a few days before it was acquired by video game publisher Microsoft. .
Source: Hollywood Reporter
Camila Luna is a writer at Gossipify, where she covers the latest movies and television series. With a passion for all things entertainment, Camila brings her unique perspective to her writing and offers readers an inside look at the industry. Camila is a graduate from the University of California, Los Angeles (UCLA) with a degree in English and is also a avid movie watcher.
