Activision Defeats Derivative Suit Over Culture, for Now (1)

Activision Blizzard Inc. is free of a derivative suit alleging company leadership failed to shut down a culture of racial and sexual harassment, but a federal judge in California said shareholders could try again on some claims.

Shareholders say the video game publisher’s directors and officers didn’t take appropriate action to stop discrimination at Activision Blizzard despite red flags.

But the shareholders didn’t make a demand on the company’s board before suing and they failed to sufficiently explain why doing so would have been futile, the US District Court for the Central District of California said.

The shareholders sued ...