Activision Defends Dismissal of Workplace Culture Investor Suit

Investors’ claims that Activision Blizzard Inc.'s failure to disclose sexual harassment investigations inflated its stock price were unsound and their dismissal was proper, the video game company told the Ninth Circuit.

The lower court’s decision to toss the securities fraud case “should be affirmed on at least three independent grounds"—that the challenged statements to investors weren’t false, that the company and its leadership lacked the necessary intent, and that the investors didn’t show the issue was linked to a stock drop, the videogame maker said in an appellate brief.

Two investigations—by California’s Department of Fair Employment and Housing and the ...