Last week, Activision Blizzard announced its intention to regain its independence from its largest shareholder, Vivendi, but that won't happen if shareholder Todd Miller has his way.
Miller filed a complaint against Activision Blizzard, its board of directors and Vivendi, alleging "breach of fiduciary duties, waste of corporate assets and unjust enrichment," according to a report by Courthouse News Service.
If the private sale, worth $8.17 billion, moves forward, Activision Blizzard CEO Bobby Kotick and co-chairman Brian Kelly will head a group of investors called ASAC II, which will contribute $2.34 billion to the sale, including $100 million from Kotick and Kelly. As of July 26, the day the deal was announced, ASAC II's acquisition of shares was settled at an approximate 10 percent discount.
Miller's complaint alleges that the group will "score an immediate paper windfall of $664 million" but that the sale doesn't benefit Activision Blizzard.
According to the complaint, "there was no apparent business purpose in allowing the insider investor group to participate in the discounted stock offering, other than to aggrandize defendants Kotick and Kelly and provide billions of dollars' worth of Activision stock to the insider investor group at a discounted price."
Miller further alleges that the Activision Blizzard board is "beholden to Vivendi" and asks the court to revoke the purchase agreement and "prevent future one-sided self-dealing."