Site icon IATA News

Activision Says It Will Cooperate With Insider Trading Investigations

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

The company said it had 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 requests appeared to relate to investigations into whether investors who knew Bobby Kotick, Activision’s chief executive, engaged in insider trading of Activision stock before the Microsoft deal was made public.

“Activision Blizzard has informed these authorities that it intends to be fully cooperative with these investigations,” the company said in the filing.

The Wall Street Journal reported in March that three investors had made plans for large purchases of Activision stock just days before the announcement, netting them about $60 million after the company’s stock price jumped. The Journal reported that one of them had met with Mr. Kotick the week before the three men bought the stock. The filing did not name the investors.

Activision and the S.E.C. did not immediately respond to requests for comment. The embattled gaming company, which produces titles like Call of Duty and Candy Crush, has been under fire since last summer, when a California employment agency sued it on allegations that it had a toxic, sexist workplace culture, leading to employee walkouts and the ousting of some executives.



Source link

Exit mobile version