Activision, Vivendi lawsuit settlement amounts to $275 million
Activision Blizzard reached a settlement this week over a shareholder's lawsuit in regards to the Call of Duty publisher's October 2013 buyout. As a result, Vivendi and others will pay $275 million to Activision to settle the litigation, which began in August 2013 before Activision's $8.2 billion purchase of itself from Vivendi was completed. Under the settlement terms, Activision will also add two directors to its board and must change the terms of its voting rights.
According to the lawsuit, Activision CEO Bobby Kotick and Co-Chairman Brian Kelly seemingly benefited from insider knowledge of the company's purchase, obtaining a 10 percent discount when Kotick's investment firm purchased 172 million shares of Activision for $2.34 billion. The lawsuit alleged a "breach of fiduciary duties, waste of corporate assets and unjust enrichment." Emails from the suit presented in July revealed that Vivendi wanted to fire Kotick in 2013 during the purchasing negotiations.
[Image: Activision]
