A judge has dismissed a class action lawsuit brought by a group of Activision Blizzard investors that accused the company of misleading them with regard to federal and state investigations into the company's culture of sexual harassment and gender-based discrimination. (H/T Bloomberg Law.)
The suit, which was originally submitted in August 2021, claimed that Activision Blizzard had neglected to describe the extent of the investigations into its workplace environment. The publication of the California Department of Fair Employment and Housing's suit against Activision Blizzard, plus an Equal Employment Opportunity Commission investigation of the same problems, led investors to cry foul.
Investors said they were misled by false statements delivered in Activision Blizzard's SEC filings, its Code of Conduct, and its 2020 Environmental, Social, and Governance Report.
Judge Percy Anderson of the U.S. District Court of California granted Activision Blizzard's motion to dismiss the suit Monday, describing the suit's allegations as "bare bones assertions." The judge asserted that "the backdrop of the #MeToo movement and national media coverage of accused industry titans is too vague a concept to raise a strong inference of scienter."
Judge Anderson also rejected the claim that individual executives must have known about the sexual harassment and discrimination taking place, saying the suit fails to prove that point.
Investors have 30 days to file an amended complaint before the suit fizzles.
Activision Blizzard settled the EEOC's suit last month, but remains embroiled in the DFEH investigation and two other suits related to its toxic workplace.
