A U.S. judge has ruled that top officials at Activision Blizzard must face shareholder allegations claiming they failed to secure the best possible deal for investors in the company’s $69 billion sale to Microsoft Corp.. The decision marks a significant development in one of the most scrutinized mergers in tech and gaming history.

Court Denies Dismissal Motion by Activision Leadership

Delaware’s Court of Chancery refused to dismiss claims against Activision CEO Bobby Kotick and other senior executives. The court determined that shareholders had presented sufficient evidence suggesting the board may have overlooked better offers and potential conflicts of interest during negotiations with Microsoft. The ruling means the case will proceed toward discovery, where internal communications and documents could come under scrutiny.

Shareholders Allege Conflicts of Interest

The lawsuit, brought by Activision shareholders, accuses executives of prioritizing their personal financial interests and reputations over investor value. Plaintiffs claim Kotick’s desire to finalize a quick sale amid sexual harassment scandals and declining stock prices influenced the pace and terms of the Microsoft agreement. The court’s order opens the door for a deeper examination of whether the board acted independently and in good faith.

Microsoft Deal Under Ongoing Legal and Regulatory Spotlight

Microsoft completed its $69 billion acquisition of Activision Blizzard in 2023 after extended regulatory battles in both the U.S. and the U.K. Although the merger ultimately went through, legal challenges from shareholders and antitrust authorities continue to shadow the deal. The Delaware case could potentially expose new details about how Activision’s leadership handled negotiations during a period of intense public scrutiny.

What Comes Next

The ruling does not overturn the merger but keeps the defendants — including Kotick and several board members — in active litigation. Analysts believe the outcome could set a precedent for future mega-mergers involving potential conflicts of interest. Activision and Microsoft have yet to comment publicly on the latest court decision.