Judge eyes $275 million settlement in shareholder lawsuit challenging Activision-Vivendi deal

MarketsAssociated Press

A Delaware judge is eyeing approval of a $275 million settlement in a shareholder lawsuit alleging that videogame maker Activision Blizzard was shortchanged in a $6 billion buyback of shares from French media conglomerate Vivendi SA in 2013.

Following a hearing Wednesday, the judge said he viewed the settlement favorably, and that the defendants were providing reasonable value to settle the claims against them.

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An attorney for the lead plaintiff told the judge that the $275 million settlement is the largest ever in a derivative suit, in which shareholders sue on behalf of a company.

The lawsuit alleged that Activision executives and directors, working with Vivendi, breached their fiduciary duties by entering into a deal that improperly benefited CEO Bobby Kotick and co-chairman Brian Kelly.