Activision #MeToo Securities Suit Wrongly Tossed, Investors Say

Investors told the Ninth Circuit they adequately supported a proposed class suit alleging that Activision Blizzard Inc.'s failure to disclose sexual harassment investigations improperly inflated its stock price.

The lower court failed to consider some of the material in the complaint, didn’t construe the allegations in the investors’ favor, and didn’t analyze them “together and in context,” lead plaintiff Jeff Ross and other shareholders said in a bid for reinstatement of the suit.

Two investigations—by California’s Department of Fair Employment and Housing and the US Equal Employment Opportunity Commission—were the focus of the investors’ suit against the game maker.

The ...