Activision’s $69 Billion Sale to Microsoft Draws Challenge (1)

A Swedish state-run pension fund sued Activision Blizzard Inc. and Microsoft Corp., claiming their planned $69 billion merger was rigged to exploit the beleaguered gaming giant’s sexual harassment crisis and protect its CEO.

The 205-page complaint also targets embattled Activision chief Bobby Kotick, plus current and ex-members of its board. It accuses them of engineering an underpriced deal in exchange for terms allowing Kotick to stay at the helm, at least until the transaction closes after a drawn-out regulatory review.

Knowing Activision and Kotick were “weak and wounded,” Microsoft used the leverage created by the scandal to acquire Activision ...