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Activision Blizzard Investors Get Securities Suit Lead Plaintiff

Nov. 3, 2021, 6:51 PM

Activision Blizzard Inc. investors who say the company hid a state investigation of the harassment and discrimination pervading its workplace culture secured a lead plaintiff for their suit in federal court in California.

Individual investor Jeff Ross will guide the securities litigation against the video game publisher for the would-be class, the U.S. District Court for the Central District of California said. Ross was the only person to seek appointment as lead plaintiff, and no one opposed his motion.

He alleged nearly $12,000 in losses and said he wasn’t aware of any member of the potential class who lost more. Based on those allegations, Ross has the largest financial interest in the litigation, according to Judge Percy Anderson’s order docketed Tuesday.

The company is facing a raft of litigation over its alleged culture that includes claims in separate actions by federal regulators and California’s Department of Fair Employment and Housing.

Ross’ submissions indicate that he “would vigorously pursue recovery on behalf of the entire class, suggest no conflict of interest,” and indicate his chosen counsel has “the requisite expertise and capability to prosecute and manage this litigation efficiently and effectively,” Anderson said. He thus appears to meet typicality and adequacy requirements and “is presumptively the most adequate plaintiff.”

Anderson also appointed Rosen Law Firm PA as lead counsel. The proposed class includes everyone who acquired Activision Blizzard’s publicly traded common stock from Aug. 4, 2016, through July 27, 2021.

Wilmer Cutler Pickering Hale & Dorr LLP represents Activision Blizzard.

The case is Cheng v. Activision Blizzard Inc., C.D. Cal., No. 2:21-cv-06240, order docketed 11/2/21.

To contact the reporter on this story: Jennifer Bennett in Washington at jbennett@bloomberglaw.com

To contact the editor responsible for this story: Rob Tricchinelli at rtricchinelli@bloomberglaw.com

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