Microsoft Agrees to Pay $250 Million to Settle Activision Blizzard Shareholder Suit

Microsoft agreed to pay $250 million to settle a 2022 class-action lawsuit filed by the Swedish pension fund Sjunde AP-Fonden (AP7). The suit alleged that Activision Blizzard CEO Bobby Kotick hastily approved Microsoft’s $69 billion acquisition to avoid personal termination, thereby depriving shareholders of a higher price than the $95 per-share offer. AP7 claimed Kotick’s actions violated fiduciary duties and sought a payout for shareholders holding Activision stock from Microsoft’s January 2022 bid announcement through the October 2023 closing. The settlement provides eligible shareholders with an additional 30 cents per share, totaling the announced $250 million. No admission of wrongdoing is included; Microsoft’s notification states it entered the agreement solely to avoid litigation costs and disputes over alleged workplace misconduct. The case also intersected with prior sexual-misconduct claims from a 2021 California Civil Rights Department investigation, which was later settled for $54 million in late 2023 with all allegations withdrawn. AP7’s settlement language references the California consent decree, noting that no court or independent investigation substantiated claims of systemic harassment. The agreement covers shareholders globally and spans the period from Microsoft’s bid announcement to the acquisition’s completion, reflecting a resolution of both fiduciary and misconduct-related disputes within the video-game industry.