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Activision Blizzard, Inc.

Class Action
  • Active
Investigation
08/03/2021
Initial Lawsuit
08/03/2021
Lawsuit Progression
11/01/2021

Investigation

Investigation regarding Activision Blizzard’s lawsuit against California Department of Fair Employment and Housing for discrimination against women.

  • Investigation Date
    08/03/2021
  • Hypothetical Affected Period
    August 4, 2016 to July 27, 2021
  • Hypothetical Transgression
    Securities Violation
Main Event

"Frat boy" Culture is Unacceptable

07/21/2021

Complaint on file

The California Department of Fair Employment and Housing announces a lawsuit against Blizzard Activision for discrimination against female employees (complaint). The lawsuit alleges that the company “fostered a sexist culture and paid women less than men despite women doing substantially similar work, assigned women to lower level jobs and promoted them at slower rates than men, and fired or forced women to quit at higher frequencies than men“. The agency also alleges that “African American women and other women of color were particularly impacted by Activision Blizzard’s discriminatory practices” and that “women were subjected to constant sexual harassment, including groping, comments, and advances“.

The lawsuit also points out knowledge of “the company’s executives and human resources personnel” but failure “to take reasonable steps to prevent the unlawful conduct, and instead retaliated against women who complained.”

The stock impact compares the closing price immediately preceding the date of the event and the following closing price. The price difference also reflects the overall mix of information.

Stock Impact

Close Previous close Price variation Percentage variation
$91.17 $91.51 $-0.34 -0.37%
See more on Factual Timeline

Initial Lawsuit

First Complaint - 08/03/2021

This is a class action on behalf of persons or entities who purchased or otherwise acquired publicly traded Activision Blizzard securities between August 4, 2016 and July 27, 2021, inclusive.

  • Filing Date
    08/03/2021
  • Class Period
    08/04/2016 to 07/27/2021
  • Transgression
    Securities Violation
  • Filing Firms
    The Rosen Law Firm, P.A.
  • Case Title
    Gary Cheng v. Activision Blizzard, Inc. et al
  • Docket Number
    2:21-cv-06240
  • Court
    California Central District Court
  • Free File
    Complaint

Allegations

According to the complaint, defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the company’s business, operations, and prospects. Specifically, defendants allegedly failed to disclose to investors that:

(1) Activision Blizzard discriminated against women and minority employees;
(2) Activision Blizzard fostered a pervasive “frat boy” workplace culture that continues to thrive;
(3) numerous complaints about unlawful harassment, discrimination, and retaliation were made to human resources personnel and executives which went unaddressed;
(4) the pervasive culture of harassment, discrimination, and retaliation would result in serious impairments to Activision Blizzard’s operations;
(5) as a result as a result of the foregoing, the company was at greater risk of regulatory and legal scrutiny and enforcement, including that which would have a material adverse effect;
(6) Activision Blizzard failed to inform shareholders that the California Department of Fair Employment and Housing had been investigating Activision Blizzard for harassment and discrimination;
(7) as a result, defendants’ statements about Activision Blizzard’s business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.

Defendants

  • Company
    Activision Blizzard, Inc.
  • Chief Executive Officer
    Robert A. Kotick
  • Chief Financial Officer
    Dennis Durkin
  • Chief Financial Officer
    Spencer Neumann

Lawsuit progression

  • Docket Number
    2:21-cv-06240
  • Court
    California Central District Court

Lead Counsel

11/01/2021

The court issued an order appointing the lead plaintiff and lead counsel.

Second Amended Complaint

05/18/2022

Investors bring this securities class action on behalf of persons or entities who purchased publicly traded Activision Blizzard common stock on the NASDAQ between November 8, 2018 and November 16, 2021, inclusive, and who held such shares on July 27, 2021, and/or September 20, 2021, and/or November 3, 2021, and/or November 16, 2021, and suffered compensable damages thereby.

Motion to Dismiss

01/11/2022

A motion to dismiss was filed with the court.

04/18/2022

Court Granted the motion to dismiss.

Factual Timeline

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