Microsoft agrees to pay $250m to settle lawsuit over Activision Blizzard deal

Microsoft has agreed to pay $250 million to settle a 2022 class action lawsuit filed by Swedish pension fund AP7, which sought to block Microsoft's $69 billion acquisition of Activision Blizzard. The lawsuit alleged CEO Bobby Kotick rushed the sale, depriving shareholders of a better stock price. Microsoft will fund 40% of the settlement with the remaining 60% covered by directors' and officers' liability insurance. Both parties denied the allegations, with Microsoft citing a desire to avoid litigation distraction. The settlement also includes statements from the California Civil Rights Department acknowledging that claims of systemic workplace misconduct at Activision Blizzard were never substantiated.