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Activision says it will cooperate with insider trading investigations

Activision Blizzard, the video game maker that is set to be sold to Microsoft for nearly $70 billion, said in a lawsuit Friday that it would cooperate in an investigation into whether some of the company’s investors engaged in insider trading before the deal was announced .

The company said it received a request for information from the Securities and Exchange Commission, which enforces securities rules, and a grand jury subpoena from the Justice Department. The inquiries appeared to be related to investigations into whether investors who knew Bobby Kotick, Activision’s CEO, were involved in insider trading in Activision stock before the Microsoft deal was made public.

“Activision Blizzard has notified these authorities that it intends to be fully cooperative in this investigation,” the company said in the filing.

The Wall Street Journal reported in March that just days before the announcement, three investors had been planning big purchases of Activision stock that netted them about $60 million after the stock price soared. The Journal reported that one of them met with Mr. Kotick the week before the three men bought the shares. The filing did not name the investors.

Activision and the SEC did not immediately respond to requests for comment. The embattled gaming company, which produces titles like Call of Duty and Candy Crush, has come under fire since last summer when it was sued by a California employment agency over allegations that it has a toxic, sexist work culture that has led to walkouts and layoffs led by employees, some executives.

https://www.nytimes.com/2022/04/15/technology/activision-sec-insider-trading.html Activision says it will cooperate with insider trading investigations

Mike Fahey

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