Activision Blizzard is now being sued by New York City and called out by the State of New York, both specifically targeting CEO Bobby Kotick.

As reported by Axios, the New York City Employee's Retirement System filed a suit against Activision Blizzard, specifically targeting its controversial CEO, Bobby Kotick. The suit was filed in Delaware on April 26 by the group, which consists of members who own Activision stock. The suit argues that actions made by the management of the company have hurt its stock value. The complaint also says that Kotick shouldn't have been allowed to negotiate Activision Blizzard's sale in the first place. “Given Kotick’s personal responsibility and liability for Activision’s broken workplace, it should have been clear to the Board that he was unfit to negotiate a sale of the Company,” the suit says. “But it wasn’t.”

This is just the latest in the growing number of complaints and lawsuits that the company has been facing since its sexual harassment and employee maltreatment controversies blew over its head last year.

On top of the complaint from New York City, the State of New York itself as well has been urging Activision Blizzard to open up its books and provide documents so that investigators can get a clear picture of Bobby Kotick's knowledge, accountability, and responsibility for the allegations. The State of New York has additionally asked the company to prepare a report on how it's handling these harassment allegations. As reported by gameindustry.biz, the report is expected to list down:

  • Total number of disputes settled by the company, and the amount of money spent doing so
  • Progress towards reducing the average amount of time taken to resolve such complaints, either internally or through litigation
  • Total number of pending complaints regarding sexual abuse, harassment, or discrimination
  • Amount of hours worked and pay issued, as required by the California Department of Fair Employment and Housing (DFEH)

Activision Blizzard's Board of Directors urged shareholders to vote against this proposal, saying: “While the Board appreciates hearing the perspectives of our shareholders, we do not believe this proposal is in the best interests of the company or its shareholders.” The Board of Directors says that the time spent preparing such a lengthy and comprehensive report would have been better spent addressing the concerns of the employees directly, instead.

To Activision Blizzard's credit, the company has since taken steps to address employee concerns, including the formation of a Workplace Responsibility Committee and the end of mandatory arbitration. However, additional ways to make the infamous company more accountable through additional transparency and disclosure will help improve public trust in the company.