Activision-Blizzard announced it was buying back its majority stake from media conglomerate Vivendi back in July
. However, not everyone was happy with the decision, particularly several stockholders. Now Bloomberg reports
that a new lawsuit has emerged attempting to block the buyback.
The suit, filed on September 11th by Activision-Blizzard shareholder Douglas M. Hayes, argues that the deal constitutes insider trading and will ultimately benefit few besides CEO Bobby Kotick and his investor group. Hayes is suing to halt the stock buyback and compel the company to instead open a vote on the terms of the proposal, one which includes non-Vivendi shareholders such as himself.
An earlier suit brought by another shareholder
, Todd Miller, makes several similar charges. Miller's August suit alleges that Kotick et al stand to "score an immediate paper windfall of $664 million [for] no apparent business purpose" should the deal go through. It also appeals to the court to require Activision implement checks against "future one-sided self-dealing."