The investors of Activision Blizzard filed a class action complaint against the company on Tuesday, alleging that the company neglected to communicate important information about the Department of Fair Employment and Housing investigation into the company's abusive work culture resulting in a rapid decline in stock value over the past month.
This new lawsuit comes in addition to the DFEH's own complaint against the company that was filed last month.
The class in the latest lawsuit includes anyone who invested in Activision Blizzard between August 4th 2016 to July 27th 2021. During that time period, the complaint alleges the company made multiple materially false and misleading statements that downplayed the facts of the DFEH investigation and its risk to shareholders. The complaint cites numerous examples of allegedly misleading and false statements from Activision Blizzard's corporate leadership.
The complaint further alleges that the companies failure to inform the shareholders economically damaged those who invested during the class action's time period, who may have otherwise made different decisions with their investment capital.
The complaint was filed on the same day that Activision Blizzard's Q2 earnings call took place with investors. During that call, the company leadership sought to downplay the relevance of the discrimination lawsuit on the productivity and profitability of the company, while still acknowledging that the negative publicity wasn't good for business.
Activision Blizzard has not yet offered public response to the new lawsuit.
Aaron is an esports reporter with a background in media, technology, and communication education.