Activision Gets Investor Suit Over Sex Harassment Probes Tossed

Activision Blizzard Inc. investors who said the game maker misled shareholders about investigations by state and federal agencies into sexual harassment allegations failed to meet the threshold to pursue their claims under federal securities law, a California judge said.

The investors, who sued the company as well as several current and former executives in Aug. 2021, alleged that sexual harassment and gender-based discrimination were endemic at the game maker, but that Activision failed to disclose the misconduct even though regulatory investigations into its “frat boy” culture posed material business risks.

California’s Department of Fair Employment and Housing and the U.S. ...