Microsoft to pay $250M to settle lawsuit filed by aggrieved Activision Blizzard shareholders
Microsoft has agreed to pay $250 million to settle a class action lawsuit filed in 2022 by Swedish pension fund Sjunde AP-Fonden (AP7) over the company’s $68.7 billion acquisition of Activision Blizzard.
AP7 claimed that former Activision Blizzard CEO Bobby Kotick hastened the sale of the gaming company to avoid addressing mounting sexual harassment allegations that had plagued the publisher. The lawsuit alleged that this rushed transaction prevented shareholders—including AP7—from receiving better financial returns than the negotiated price of $95 per share.
The dispute emerged amid a broader crisis at Activision Blizzard. In 2021, the California Department of Fair Employment and Housing filed a major lawsuit against the company alleging workplace harassment and discrimination. That case was eventually settled in December 2023. AP7’s lawsuit challenged the timing and terms of Microsoft’s acquisition in the context of these workplace allegations, suggesting that a delayed or restructured transaction might have resulted in more favorable shareholder outcomes.
The $250 million settlement resolves the shareholder class action without Microsoft admitting wrongdoing. The amount represents a modest fraction of the acquisition’s total cost but acknowledges the pension fund’s concerns about the transaction process and shareholder value during a period when the company faced significant legal and reputational challenges.