14 DAY TRIAL // The process that would have seen video game publisher Activision Blizzard buy back most of its shares from parent company Vivendi is being stopped by a lawsuit.
Douglas M. Hayes, a shareholder, has filed a suit against the company in the Delaware Chancery Court last week and the judge has issued a preliminary enjoiner, which temporarily halts any stock buying before the matter is resolved.
The lawsuit states that the chief executive officer of Activision Blizzard, alongside its chairman and a limited number of elite investors, will benefit from the deal while minority shareholders will see their power diminished.
The publisher has issued a statement, quoted by Gamasutra, that says it is committed to the process and is “exploring the steps it will take to complete the transaction as expeditiously as possible.”
The launch of coming titles like Call of Duty: Ghosts, which will be out on November 5, will not be affected by the share buyback process and the associated lawsuit.