microsoft Activision Blizzard has agreed to settle a massive class action lawsuit brought by shareholders for $250 million. The case has become increasingly complex in recent years, to the point where Activision Blizzard is threatening to reopen an investigation into allegations of misconduct that it covered up before it was sold to Microsoft.
The lawsuit was filed in 2022 by Swedish pension fund Sjunde AP-Fonden (AP7), which alleged that Activision Blizzard sold too quickly, depriving shareholders of the opportunity to secure a higher price than Microsoft's $95 per share offer. The plaintiffs accused former CEO Bobby Kotick of rushing the sale to protect his position as the company came under investigation for allegations of workplace misconduct. The case eventually became famous for challenging the blockbuster merger and refocusing the workplace conduct controversy at Activision Blizzard.
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Microsoft's new agreement adds 30 cents per share to eligible Activision Blizzard investors.
After four years of legal drama, the dispute now appears to be over, according to a preliminary settlement notice filed in the Delaware Court of Chancery and made public in late May 2026. Under the proposal, Microsoft would pay $250 million and would not admit to any kind of misconduct that is typical of such settlements. The settlement amounts to approximately 30 cents per share for former shareholders. Anyone who owns stock in the developer-publisher between the announcement of Microsoft's acquisition of Activision Blizzard in January 2022 and the completion of the deal in October 2023 could receive a settlement if the presiding judge approves the settlement in its current form.
In an early 2026 court filing, Microsoft said it entered into the terms to avoid the burden, cost and disruption of further litigation, which is standard language for these kinds of agreements. The company also denied claims that Activision engaged in systemic or widespread workplace misconduct or that its board, including Kotick, acted inadequately in addressing these issues. The denial reflects claims made by Kotick and his legal team in the years since AP7 first filed suit. In early 2026, Kotick even countersued AP7 for “abuse of process,” further complicating the legal ordeal. Now, all these disputes are expected to be resolved soon.
In July 2021, the state of California launched a workplace discrimination lawsuit against Activision Blizzard. AP7 linked portions of the original lawsuit to the claims set forth in the California Department of Civil Rights complaint. But in the proposed settlement, the pension fund acknowledges that the earlier claims were based in part on allegations that were later described in court-approved language as never being substantiated by a court or independent investigation. The California case was settled in December 2023, with Activision Blizzard settling for $54 million without admitting any wrongdoing.
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Microsoft originally announced its acquisition of Activision Blizzard in a $68.7 billion deal, making it the largest acquisition not only in gaming but also in the broader technology sector. Activision Blizzard characterized the deal as having a total purchase price of $75.4 billion after officially joining Microsoft in October 2023. Based on larger accounting figures, the $250 million settlement represents a 0.33% increase in the overall cost of the transaction.
