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Wednesday, August 4, 2021

I Don't Trust Rosen Law Firm's Activision Blizzard Class Action Lawsuit

By LUDWIG VON KOOPA - Not after what I wrote a year ago!

You probably already know about the lawsuit filed by the California Department of Fair Employment and Housing against Activision Blizzard for company-wide anti-women discrimination that the company knew about but did little to stop. KoopaTV hasn't discussed it at all because I like taking a wait-and-see approach to how it plays out. I do loathe the company in question (I've already been boycotting Activision since 2001), and it's easy to believe the allegations against it. The head of the Blizzard side, J. Allen Brack, has even just resigned from the company. There are many moving parts to this. Company walkouts too.

There's... not a tremendous net effect on Activision Blizzard's stock price, but Rosen Law Firm has decided to file a class action lawsuit (that isn't yet certified) against Activision Blizzard on behalf of what it hopes are thousands of investors. (You can read the lawsuit text here.) The gist is that, in Activision's financial disclosures, they've been generically stating that they may be or are the subject of legal proceedings and investigations into all kinds of matters, including employment-related ones. Rosen Law Firm claims that Activision knew that with California investigating them for the past couple of years, that they would get sued, and this would have a materially bad impact on the business and they should've specifically disclosed this and done things to take workplace harassment and unequal pay claims much more seriously. Rosen believes the stock price has been “inflated” by undisclosed policies of treating women employees poorly, and that investors would avoid investing in Activision stock if they knew about it.

I don't think the class action lawsuit will go anywhere, and the reason for this is because I already covered the antics of the Rosen Law Firm last year when they filed a class action lawsuit on behalf of CD Projekt's investors. That went absolutely nowhere and they've hidden the references to CD Projekt from their website. I emailed them months ago asking what happened and they've ghosted me, so I don't think that lawsuit threats from Rosen Law Firm are credible or go anywhere.

Activision did say in their disclosures that, upon hearing from their own legal team, that the on-going lawsuits aren't significant, and I don't think reasonable people should believe the sincerity of that. It's far more likely that Activision Blizzard's management really didn't think anything would come of California's then-investigation (and it's unclear if anything WILL come out of California's lawsuit, since they still have to prove their claims in court, and that's tough!) than Activision is choosing to engage in a massive cover-up conspiracy to defraud investors. Personally, I still think CD Projekt was trying to defraud people by covering up how bad Cyberpunk 2077—the basket they were putting the majority of their eggs in—was on the most popular gaming platforms. Activision should be held accountable for what bad and illegal stuff goes on in that company (to the extent it's provable), but this class action lawsuit won't be the avenue for that accountability.

Ludwig has re-reached out to Rosen Law Firm regarding the CD Projekt lawsuit. He'll update this article if he ever gets a response. Or he might even write a new one! ...And this probably won't be the last you hear of the Activision Blizzard lawsuit on KoopaTV. There's just so much going on in a short period of time that the site doesn't want to dedicate itself to covering just that one story.

While Rosen's lawsuit is unsurprisingly going nowhere, there is government vs. government drama with their anti-Activision suits.
Ludwig was wrong, and Rosen's class-action against CD Projekt was a success. Well, it got a settlement of above zero from CD Projekt.

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