Recently, Activision Blizzard has found itself in controversy once again, following a lawsuit from California's Department of Fair Employment (DFEH), which contained a number of serious allegations. As you would expect, some investors are not pleased with how things are playing out, with some brewing a second lawsuit against the company.
A second lawsuit (via Arstechnica) is being filed against Activision Blizzard, this time on behalf of shareholders, claiming that executives made “false and misleading statements” during SEC filings and failed to disclose the number of complaints made to the company's HR department over the years.
The lawsuit also cites unrest amongst employees, as thousands signed an open letter condemning Activision Blizzard's initial response and handling of the lawsuit filed by DFEH, there was also a mass walkout involving hundreds of developers. The new lawsuit argues that shares in Activision Blizzard were “artificially and falsely inflated by misleading statements”.
Over the last five days, shares in Activision Blizzard have fallen by 3.86 percent. However, there has been a slight recovery following the company's quarterly earnings report.
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KitGuru Says: Activision Blizzard has yet to respond to this second lawsuit filing. Currently, the case is seeking class-action status, so a judge will need to rule on whether the suit can go ahead at some point in the months to come.