Shareholder claims of unjust enrichment result in injunction

Activision-Vivendi deal halted by court

A lawsuit aimed at halting the proposed deal to buy Activision’s independence from Vivendi has met initial success, the US publisher revealed today.

The plaintiff, shareholder Douglas Hayes, filed a complaint alleging that the stock purchase – which gives 25 per cent of Activision stock to an investment group led by the company’s CEO Bobby Kotick and co-chairman Brian Kelly at a discounted rate – constitutes unjust enrichment.

Hayes is the second shareholder to make this claim, though another lawsuit by plaintiff Todd Miller has yet to make similar headway.

The Delaware Chancery Court’s ruling in Hayes vs. Activision Blizzard resulted in an injunction that puts the brakes on the deal until the company wins an appeal or the transaction is approved by a stockholder vote of non-Vivendi shareholders.

“Activision Blizzard remains committed to the transaction and is exploring the steps it will take to complete the transaction as expeditiously as possible,” said the company in a statement.

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