Activision Blizzard $250M Securities Class Action Settlement

Investors who held Activision Blizzard Inc. common stock and received $95 per share in cash on Oct. 13, 2023, in the company's acquisition by Microsoft Corp. may be eligible to receive a cash payment from a class action settlement.

Activision Blizzard and Microsoft agreed to pay $250 million to settle a stockholder class action lawsuit alleging several Activision directors breached their fiduciary duties in the negotiation, approval and disclosure of the company's acquisition by Microsoft. The lawsuit also claimed the deal and a related special dividend violated Delaware corporate law.

Who can file a claim?

The settlement class includes all record holders and beneficial owners of Activision Blizzard common stock who held shares at any time from Jan. 18, 2022, through Oct. 13, 2023. Only class members who held shares at the closing on Oct. 13, 2023, and received the $95 per share merger consideration will receive a payment.

Additional details

• Both individuals and entities can be class members.
• The class includes the legal representatives, heirs, successors-in-interest, transferees and assignees of eligible holders.
• The class is certified solely for settlement purposes and is a non-opt-out class under Delaware Court of Chancery Rules 23(a), 23(b)(1) and 23(b)(2), meaning class members cannot exclude themselves from the settlement.

How much can class members get?

The total settlement fund is $250,000,000. The amount each class member receives depends on several factors:

• The number of eligible shares held at the closing of the merger on Oct. 13, 2023
• The total number of eligible shares in the class
• The amount of the net settlement fund after court-approved deductions

The settlement administrator will distribute payments on a pro rata basis according to the court-approved plan of allocation:

• Each class member's payment equals the number of eligible shares they held at closing times the per-share recovery.
• The per-share recovery is the net settlement fund divided by the total number of eligible shares.
• The settlement represents approximately $0.30 per share before deductions for fees, costs and taxes.
• For shares held in "street name" through a broker, the settlement administrator will distribute payments to DTC participants, who will then distribute payments on a pro rata basis to beneficial owners.
• For shares held of record outside DTC, the settlement administrator will distribute payments directly to the record owner.

No claim form needed to receive payment

Class members do not need to submit a claim form to receive payment. The settlement administrator will distribute payments the same way class members received the original $95 per share.

Settlement administrator’s mailing address: Activision Blizzard Stockholder Litigation, c/o A.B. Data Ltd., P.O. Box 170500, Milwaukee, WI 53217

Important date

• Fairness hearing: Sept. 15, 2026

When is the Activision Blizzard stockholder class action settlement payout date?

The settlement administrator will issue payments to eligible class members after the court resolves any appeals and grants final approval of the settlement.

Why did this class action settlement happen?

The class action lawsuit alleged several Activision directors breached their fiduciary duties in the negotiation, approval and disclosure of Microsoft's acquisition of Activision Blizzard. The plaintiff also claimed the merger and a related special dividend violated Delaware corporate law.

The defendants denied all allegations of wrongdoing but agreed to settle to avoid the costs, risks and delays of continued litigation.

Sources

1. Class notice