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New York-based Retirement Holdings sues Activision over Microsoft acquisition



New York-based Retirement Holdings sues Activision over Microsoft acquisition


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Today, another chapter has been added to the seemingly endless saga sparked by Microsoft’s impending acquisition of Activision Blizzard.

Posted on May 4, 2022 Giuseppe Nelva

Home » News » New York City-Based Retirement Holdings Sues Activision Over Microsoft Acquisition

Pension funds representing New York City public employees filed a Section 220 lawsuit against Activision

Today, another chapter has been added to the seemingly endless saga sparked by Microsoft’s impending acquisition of Activision Blizzard.

As reported by Axios, a number of New York City public servants retirement funds (New York City Employees Retirement System, New York City Fire Department Pension Fund, New York City Police Pensions, Board of Education Retirement System and New York City Teachers’ Retirement System) filed a Section 220 lawsuit against the famous video game publisher seeking the right to inspect related company documents with the acquisition agreement.

The lawsuit, filed in Delaware on April 26, alleges that the settlement would allow the company’s CEO, Bobby Kotick, and the board of directors to evade responsibility for their alleged breaches of fiduciary duties, also related to the misconduct allegations. previous misconduct.

It also alleges that Microsoft’s offer understates the value of the company, which hurts its shareholders, including the funds acting as plaintiffs.

According to the complaint, Kotick should have been declared unfit to negotiate the Microsoft deal by the board of directors, but that did not happen.

That said, the potential effects of the lawsuit are unclear, as attorney Richard Hoeg mentioned on Twitter.

Hoeg says the overwhelming shareholder vote approval for the deal hurts the argument that he undervalued the company or misperformed. He also argues that while it’s not completely irrelevant, it’s probably not very relevant to whatever Activision and Microsoft are going through.

It’s nothing, but compared to everything Activision (and Microsoft) have… it’s pretty close.

— Richard Hoeg (@HoegLaw) May 4, 2022

The acquisition deal is still pending regulatory approval and Microsoft expects to complete it in its next fiscal year, which begins in July 2022 and ends June 30, 2023.

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