Microsoft (MSFT) to pay out $250 million settlement in Activision Blizzard Swedish pension lawsuit

The lawsuit alleged that former CEO Bobby Kotick rushed the sale of Activision Blizzard in an effort to keep his job and secure change-of-control benefits.

Shareholders of Activision Blizzard, led by Swedish pension fund Sjunde AP-Fonden, will be awarded a $250 million payout by Microsoft to settle a 2022 lawsuit alleging that Bobby Kotick rushed the lawsuit in order to keep his job, secure $400 million of change-of-control benefits, and avoid allegations of workplace misconduct. Counterclaims filed by Kotick and Microsoft have reportedly been settled as well.

The Activision Blizzard shareholder lawsuit settlement was announced earlier today, as reported by Reuters. Filed in 2022, the lawsuit was a response to the sale of Activision Blizzard under the conditions which it was executed. Sjunde and fellow plaintiffs claimed Kotick’s gross misconduct and aggressive sale of the company at a $95 per share takeover price was a breach of fiduciary duty.

Bobby Kotick’s legal team recently lashed out at organizers of the lawsuit, claiming that it was a ploy by Embracer Group to harm Activision Blizzard and attract its talent away. He went on to claim that his leadership at Activision Blizzard, which included the alleged violent protection of abusive leaders, was beneficial to shareholders who he felt “should be expressing extreme gratitude” that the company sold when it did.

The $250 million settlement says otherwise, but it also keeps Kotick from the threat of having to admit to that on court record. With the case currently settled, stay tuned to the Activision Blizzard topic for more updates.

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