Activision Blizzard: Now the shareholders are suing because information on allegations was withheld

Activision Blizzard

Following the lawsuit filed by the state of California, several shareholders of Activision Blizzard have now also sued the company. In detail, the shareholder CEO Bobby Kotick and other responsible parties accuse them of deliberately withholding the information on the allegations. In addition, according to shareholders, the company is to blame for the loss in value of the share, which is now leading to an economic one.

Almost a week ago, the scandals within the company - including sexism, discrimination and harassment - caused the state lawsuit were unveiled, making headlines in the media landscape. The day after the announcement alone, Activision Blizzard's shares plummeted 6 percent. Until yesterday, Tuesday, there was another 5 percent loss in value. The employees criticize CEO Bobby Kotick, who is not satisfied with the reactions to the allegations.

Read also 0

Sexism, discrimination, rape: We have to talk about Activision

The mountain of scandals surrounding Activision is growing, before Ubisoft made headlines. It is time for a drastic change. A comment by Lukas Schmid. 0

Activision Blizzard: Townsend blocks employees on Twitter

Frances Townsend, Executive Vice President for Corporate Affairs at Activision Blizzard, blocks employees and journalists on Twitter. var lstExcludedArticleTicker = '1377148,1376951,1377038'; During the investor conference, only two people asked a question about current events. A shareholder wanted to know what Activision Blizzard will do about the existing problems and whether all of this has had an impact on productivity in the development of the games. However, COO Daniel Alegre only responded to previous statements by the company. With regard to the upcoming projects, he only said that they were currently "making good progress" - but there was no more detailed information either.

Because of the resignation of Blizzard President J. Allen Brack, the new co-leaders were already Jen Oneal and Mike Ybarra present at the conference. Finally, Oneal also answered the second question about the lawsuit. It was about the plans of the new leaders how they want to rekindle the Blizzard fire. "We have a lot of work ahead of us, but the passion and productivity is already here - and when our people feel safe and supported, the rest will take care of itself," Oneal said of the shareholder's question. A few hours after the investor conference, the share has recovered somewhat from its low (EUR 65.93) and is now at a value of EUR 71.38.

Read also 0

Activision Blizzard: Employees new demands, are dissatisfied with Kotick

The newly founded employee association "ABK Worker Alliance" is not satisfied with the statements made by Activision boss Bobby Kotick. 0

Blizzard: President J. Allen Brack announces resignation

Blizzard President J. Allen Brack has announced his resignation with immediate effect. Jen Oneal and Mike Ybarra take over. 0

Activision Blizzard: Townsend blocks employees on Twitter

Frances Townsend, Executive Vice President for Corporate Affairs at Activision Blizzard, blocks employees and journalists on Twitter. var lstExcludedArticleTicker = '1377148,1377132,1377100,1377038'; via Arstechnica & IGN

---

Activision Blizzard Stock Gains on Earnings as Analysts Look Past Harassment Suit

© TheStreet Activision Blizzard Stock Gains on Earnings as Analysts Look Past Harassment Suit

Activision Blizzard stock gained nearly 6% Wednesday after the 'Call of Duty' and 'Black Ops' video-game developer reported stronger-than-expected second-quarter results and lifted its guidance, prompting analysts to look past the company's recent troubles related to a sexual harassment lawsuit.

CONSTELLATION BRANDS, INC.

Activision Blizzard shares were up 5.79% at $84.45 in premarket trading after the Santa Monica-based company reported earnings that topped estimates, helped by a rebound in playing hours on its 'Call of Duty' franchise game.

The better-than-expected earnings and guidance came amid a sexual harassment lawsuit from the California Department of Fair Employment and Housing and an employee walkout.

It also followed by hours the departure of Blizzard President J. Allen, who stepped down from the company, which announced that Jen Oneal and Mike Ybarra would be taking over.

The lawsuit, filed on July 20, alleges equal pay violation sex discrimination and sexual harassment at Activision Blizzard. It also claims company's executives failed to take reasonable steps to prevent unlawful conduct.

Wall Street analysts mostly focused on the numbers, with Jefferies analyst Andrew Uerkwitz noting that the results 'show some encouraging signs, notably that gamers are not cutting their spending significantly, while guidance sounds conservative but confident.'

Baird analyst Colin Sebastian wrote in his own post-earnings note to clients that while Activation Blizzard has had a 'rough few weeks' that early actions by management are encouraging,' reminding investors that the company has a 'rock-solid' portfolio of games.

Barclays analyst Mario Lu shared a similar message with his clients, noting that Activation Blizzard's main franchises are 'looking robust,' and that while the lawsuit will be an overhang 'a shake-up of top Blizzard management will be a sign of improvements to come.'

Shares of Activision Blizzard have fallen more than 6% over the past five trading days. Year to date the stock has declined 11.2%.

This article was originally published by TheStreet.