Bobby Kotick has alleged that a lawsuit challenging the Microsoft-Activision acquisition is "linked to Embracer's intention to increase sales"

Bobby Kotick, the former CEO of Activision Blizzard, asserted a lawsuit by a Swedish pension fund was designed to advantage Embracer in gaining an edge in California over Activision.

The lawsuit, filed in 2022 by Sjunde AP-Fonden AP7, challenged Microsoft's proposed $69 billion acquisition of Activision Blizzard. It accused Kotick of expediting the sale to sidestep repercussions from sexual misconduct controversies.

Kotick refuted these accusations, outlining his defense in a recent court document made public through Game File.

Kotick criticized AP7's legal action as an attack on Activision, linked to Embracer's ambitions to enhance its game sales while stifling Activision's competing games. His legal team countered with a case against Embracer, claiming AP7's legal challenge had ulterior motives, such as gaining collateral benefits and harming Activision.

Embracer responded, stating they did not require support from a Swedish pension fund to compete, denying any coordination or instructions involving AP7.

The AP7 lawsuit also pointed to a significant drop in Activision Blizzard's share value in 2021, attributing it to the eruption of sexual misconduct allegations.

The downturn followed a lawsuit filed by a California authority over harassment and discrimination at Activision Blizzard, further amplified by a Wall Street Journal report in November of the same year.

AP7 argued Kotick sought a merger with Microsoft, agreeing to a sale at $95 per share to defend his position against growing pressure to resign.

Kotick maintained his stance that claims by the Communications Workers of America (CWA) about workplace issues were fabricated, accusing them of creating false narratives to drive union interest as technology job roles diminished.

In late 2021, Activision Blizzard settled with the US Equal Employment Opportunity Commission without admitting liability, establishing an $18 million compensation fund for victims. Kotick expressed gratitude to employees for their courage in sharing experiences, emphasizing there was no tolerance for misconduct at the company.

In response to the AP7 case, Kotick stated the settlement was pursued to avoid the burdensome nature of the lawsuit, asserting that misconduct incidents were managed effectively by the company's compliance team and denying any widespread issues.