Microsoft has reached an agreement to pay $250 million to settle a lawsuit related to its acquisition of Activision Blizzard

In response to a class action lawsuit filed in 2022 by the Swedish pension fund Sjunde AP-Fonden AP7, Microsoft has agreed to a $250 million settlement. This legal action sought to block Microsoft's planned purchase of Activision Blizzard for $69 billion.

The legal case argued CEO Bobby Kotick expedited the company's sale, potentially missing out on a more favorable stock price than the $95 per share agreed with Microsoft. Both sides have refuted these claims. Microsoft cited a desire to avoid litigation distractions, while AP7 accepted the financial settlement as just.

Documents filed for a preliminary settlement in the Delaware Court of Chancery detail that Microsoft will contribute 40% of the settlement funding, with the remaining 60% sourced from officers' and directors' liability insurance. This payout translates to about 30 cents per share for Activision Blizzard investors.

"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 CEO, Kotick, acted improperly with regard to the handling of any instances of workplace misconduct."

Kotick accused that AP7's lawsuit was motivated by the interests of the Swedish company Embracer, linked through AP7's executive, Emma Ihre, who previously had ties with Embracer. His legal team called it a strategic move to disadvantage Activision Blizzard while enhancing Embracer's market position.

Embracer refuted these allegations stating no collaboration existed between them and AP7, insisting there was no influence over AP7 from within their organization.

AP7 has indicated that the California Civil Rights Department's accusations against Activision Blizzard, which stemmed from its own 2021 legal actions concerning sexual misconduct and discrimination, were not validated.

"No court or any independent investigation has substantiated any allegations that: there has been systemic or widespread sexual harassment at Activision Blizzard [or] that Activision Blizzard senior executives ignored, condoned, or tolerated a culture of systemic harassment, retaliation, or discrimination."

The contested acquisition was finalized in October 2023, following an investigation conducted by the UK's Competition and Markets Authority.