Microsoft agrees to pay $250m to settle lawsuit over Activision Blizzard deal

Microsoft will pay $250 million to settle a 2022 class action lawsuit filed by Swedish pension fund Sjunde AP-Fonden AP7, which aimed to block Microsoft’s $69 billion acquisition of Activision Blizzard.

The lawsuit alleged that CEO Bobby Kotick “rushed” the sale, thereby depriving shareholders of a better stock price than the $95 per share agreed to by Microsoft.

Both parties denied the allegations. Microsoft said it settled to avoid the “distraction of litigation,” while AP7 considered the payment “fair.”

A preliminary settlement filed last week in Delaware’s Court of Chancery (via Game File), which is pending final court approval, states Microsoft will fund 40% of the settlement, with the remaining 60% covered by directors’ and officers’ liability insurance. The payment equals about 30 cents per Activision Blizzard share.

Microsoft’s statement in the filing:

“Microsoft does not substantiate any allegations that there has been systemic or widespread workplace…