Activision Blizzard recently announced plans to break ties with Vivendi by selling its shares to an investor group. In response, shareholder Todd Miller has filed a complaint against Activision, its board of directors, and Vivendi, claiming the investor group is coming out ahead with no benefit to Activision's other shareholders.
According to Miller's claim reported by Entertainment Law Digest, the investor group, which includes Activision CEO Bobby Kotick, will get a "staggering windfall" of $600 million out of the deal. The investor group is planning to buy 172 million shares for $2.34 billion, at a price 10% lower than Activision's closing price before the day of the announcement. He accuses the companies of breach of fiduciary duties, waste of corporate assets, and unjust enrichment.
Miller's complaint boils down to the investor group getting an "immediate paper windfall" through a private sale that doesn't benefit Activision. "(T)here was no apparent business purpose in allowing the insider investor group to participate in the discounted stock offering, other than to aggrandize defendants Kotick and Kelly and provide billions of dollars' worth of Activision stock to the insider investor group at a discounted price," the complaint states.
The complaint asks the court to rescind the purchase agreement, and to put controls in place to prevent similar actions in the future.
Shacknews has contacted Activision and will update as more information becomes available.