New York City-Based Retirement Holdings Sue Activision Over Microsoft Acquisition
Pension funds representing New York City public employees filed a Section 220 Complaint against Activision
Today another chapter has been added to the apparently infinite saga sparked by the pending acquisition of Activision Blizzard by Microsoft.
As reported by Axios, a number of New York City-based retirement funds for public servants ( New York City Employees’ Retirement System, the New York City Fire Department Pension Fund, the New York City Police Pension Fund, the New York City Board of Education Retirement System, and the Teachers’ Retirement System for the City of New York) have filed a section 220 complaint against the well-known video game publisher in order to be entitled to inspect company documents relevant to the acquisition deal.
The complaint, filed in Delaware on April 26, alleges that the deal would allow the company’s CEO Bobby Kotick and the board of directors to escape liability for their alleged breaches of fiduciary duties, also linked to the previous allegations of misconduct.
It also alleges that Microsoft’s offer undervalues the company’s value, thus causing damage to its shareholders, including the funds acting as plaintiffs.
According to the complaint, Kotick should have been found unfit to negotiate the deal with Microsoft by the Board, but this did not happen.