Activision Blizzard Faces Federal Derivative Suit on Harassment

Activision Blizzard Inc.'s leadership allegedly “fostered and engendered a culture that permitted rampant sexual and racial harassment and discrimination,” a new shareholder derivative suit says in federal court in California.

The video game publisher’s directors and officers also failed to tell investors about state and federal investigations into its allegedly discriminatory workplace culture for more than two years, instead referencing “routine claims and lawsuits” in its securities filings, according to the partially redacted complaint filed in the U.S. District Court for the Central District of California.

The defendants “represented that the Company had increased the number of women in its ...