Activision Blizzard Inc. Chief Executive Officer Robert Kotick and other directors agreed to a $275 million settlement of investors claims that officials improperly benefited from a buyout of Vivendi SA (VIV)s stake in the video-game maker.
Kotick, along with Activision Chairman Brian Kelly and other board members, resolved shareholder lawsuits accusing the two executives of unfairly reaping a windfall by leading a group that acquired $2.34 billion of Vivendis Activision shares as part of the $8.2 billion deal, according to a filing in a Delaware court.
The $275 million will go back into the companys coffers under the terms of the deal, Activision said in a statement. Multiple insurance companies, along with various defendants, will hand over funds for the settlement, Activision said.
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Investors sued after Activisions board agreed to allow Kotick and Kellys group, which included Chinese video-game publisher Tencent Holdings Ltd. (700), to buy 25 percent of Vivendis Activision stock at the same discounted price Activision paid for $5.83 billion of the shares.
The deal allowed the men to gain control over the maker of World of Warcraft without paying a premium, shareholder Anthony Pacchia argued in court filings
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The investors also said Kotick threatened to quit if directors didnt allow his investment group to buy a sizeable chunk of the French conglomerates stake and then blocked Activision from considering alternative deals, according to court filings.
