Activision Involved in Another Options Suit

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Santa Monica-based video game publisher Activision Inc., its board members and executives were targeted Monday in a shareholder lawsuit accusing it of improperly enhancing and reporting executives’ stock options.


The suit was filed in the Central District Court of California by the New York-based law firm of Zimmerman, Levi & Korsinsky, LLP, which is handling more than 50 other cases involving firms’ alleged “back dating” or manipulation of stock option prices and improper reporting.


On Friday after the market closed, Activision, Inc., the nation’s largest video game publisher, said it has received a letter of informal inquiry from the Securities and Exchange Commission requesting documents and information relating to the company’s stock option grant practices.


On July 19, Activision was named in a derivative suit filed in Los Angeles Superior Court on behalf of the company, against some current and former members of the company’s board of directors and former officers of the company. The complaint also alleged “improprieties in the company’s issuance of stock options.”


Activision said Monday in a statement that it is reviewing the allegations in both complaints and that it expects that defense expenses associated with the matter will be covered by its directors and officers insurance. The company also said that it intends to cooperate fully and respond to the SEC inquiry.

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