Activision Blizzard shares drop after reviews allege sexual misconduct

Activision Blizzard shares dropped about 5% Tuesday after a report from The Wall Road Journal alleged CEO Bobby Kotick knew about sexual misconduct allegations on the videogame firm.

In response to the report, Kotick failed to tell the board of administrators concerning the allegations on many events, together with an alleged rape, the Journal reported.

An Activision spokesperson advised CNBC in an announcement that the WSJ report was “inaccurate” and a “deceptive view” of the corporate’s CEO.

“We’re upset within the Wall Road Journal’s report, which presents an inaccurate and deceptive view of Activision Blizzard and our CEO,” an Activision Blizzard spokesperson mentioned. “Cases of sexual misconduct that had been delivered to his consideration had been acted upon.”

In a video message despatched to staff Tuesday, Kotick addressed the report and mentioned anybody who doubts his “conviction to be probably the most welcoming, inclusive office does not actually admire how vital that is to me,” in keeping with a transcript posted to the corporate’s web site.

The information comes because the online game firm faces a collection of investigations over its office practices, together with the way it dealt with allegations of sexual misconduct and discrimination.

In July, the California Division of Truthful Employment and Housing filed a lawsuit that alleged the corporate has a “frat boy tradition” that is a “breeding floor for harassment and discrimination in opposition to girls.”

Blizzard President J. Allen Brack left the corporate shortly after the information. He was talked about within the lawsuit as allegedly being conscious as early as 2019 that staff had been leaving due to sexual harassment on the firm.

As of Monday’s shut, Kotick owned 4,094 Activision shares valued at $285 million, in keeping with FactSet. His compensation package deal in 2020 was valued at greater than $154 million, the Journal beforehand reported.