Now that Microsoft settled to pay $250 million to Activision shareholders led by Swedish pension fund Sjunde AP-Fonden, comments of the former chief executive, Bobby Kotick, resurfaced, in which he alleged the lawsuit was merely a means to strengthen Swedish publisher Embracer Group’s position in the market.
That is according to Eurogamer, which, citing Game File, writes how Kotick argued the lawsuit was only “aimed to help Embracer increase its foothold in the California market at the expense of Activision.”
This was in response to Sjunde alleging that Kotick “rushed” the merger to keep his position in the company and cash-in on change-of-control bonuses, as we wrote yesterday, but also to “avoid the consequences of sexual misconduct scandals swirling around the company.”
Kotick both denied these allegations and added that Embracer Group, one of Sweden’s biggest publishers and one notorious for buying and closing down studios from around the world, was “a potential secret collaborator” in this lawsuit and the entity standing behind it. Embracer later denied these claims, saying that it doesn’t need anyone’s help to compete with Activision.
Yesterday, it was reported that Microsoft and Sjunde AP-Fonden reached a settlement that would both conclude the lawsuit and account for counterclaims filed by both Microsoft and Kotick. The $250-million settlement payout amounts to only $0.30 per share in addition to the $95 each shareholder received during the merger.
Additionally, Microsoft refuted allegations of “systemic or widespread workplace misconduct” at Activision and denied that senior executives tolerated a culture of harassment.
The settlement reads as follows:
Microsoft is entering into this Stipulation solely to avoid the burden, expense, and distraction of continued litigation. Microsoft does not substantiate any allegations that there has been systemic or widespread workplace misconduct at Activision; that Activision senior executives ignored, condoned, or tolerated a culture of systemic harassment, retaliation, or discrimination; or that Activision’s Board of Directors, including its Chief Executive Officer, Kotick, acted improperly with regard to the handling of any instances of workplace misconduct.
Plaintiff acknowledges that its original claims were based in part on media reporting and characterizations of allegations made by the California Civil Rights Department (the “CRD”), which the CRD itself admitted in a court-approved consent decree have never been “substantiated” by any “court or independent investigation” and now have been expressly withdrawn.
Plaintiff acknowledges that, based on the materials provided to date, there is compelling information which undermines any claim that the Board or Mr. Kotick failed to operate in good faith with respect to the matters alleged in the Action.
Update at 8pm CT on May 26, 2026: We have amended the article to include additional facts and quotes from the settlement.
