Activision Blizzard Has Been Hit with Another Lawsuit for Allegedly Misleading Investors

Activision Blizzard was recently hit with a lawsuit on allegations of widespread issues with discrimination and sexual harassment by the California Department of Fair Employment and Housing (DEFH), and that’s got the company at large reeling, but it seems things are getting even more dire for them.

As reported by GamesIndustry, Rosen Law Firm has filed a second lawsuit against the company on behalf of its investors, and is accusing Activision Blizzard of misleading investors by failing to disclose the pervasive issues with hostile working conditions at the company. The lawsuit states that anyone who invested in Activision Blizzard between August 4, 2016 and July 27, 2021 has grounds for joining the class action lawsuit.

The suit calls the company a “breeding ground for harassment and discrimination against women”, and states that it “made false and/or misleading statements and/or failed to disclose.” Many issues from the already ongoing lawsuit have been brought up and explained in the class action suit as well. It’s claimed that the DEFH investigation – which lasted two years – wasn’t disclosed to investors, and that Activision Blizzard is currently “at greater risk of regulatory and legal scrutiny and enforcement, including that which would have a material adverse effect.”

The lawsuit states that investors have incurred financial damages, and should be compensated as such. “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,” the lawsuit alleges.

During the company’s quarterly earnings call yesterday, CEO Bobby Kotick stated that steps are being taken to address the issues that have recently come to light, and that the people at the company responsible for the same “will be held accountable.” 

Shortly before Activision Blizzard’s investors call, Blizzard president J. Allen Brack stepped down from his role and left the company.