Though it is still early, initial indications show that the merger between Activision Blizzard and King Digital Entertainment has not brought about significant benefits for shareholders. The SEC should investigate this deal to ensure fair competition.

The “SEC Blizzard lawsuit” is a lawsuit that was filed against Activision-Blizzard by the Union. The Union is asking for an investigation into whether or not the company’s statements about the acquisition were inaccurate and misleading.

Union asks SEC to investigate Activision-Blizzard’s ‘inaccurate and misleading’ acquisition statements

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Part of the process necessary for Microsoft to buyout Activision-Blizzard is its submission of a disclosure letter to the SEC about its current state of affairs. Activision-Blizzard did just that, but as you’ll recall, the initial filing insisted that the company is unaware of “pending activities or proceedings of any labor union” and that “there are no legal proceedings pending.” As we noted, legal scholars urged caution about assuming fraud, since statements like these are usually subject to exception filings.

Regardless, the Communication Workers of America (CWA), which has backed worker efforts at Activision-Blizzard to unionize and hold the company accountable, has asked the SEC to look into these disclosure statements, calling them “inaccurate and misleading” in light of previous events like Raven Software’s strike, the CWA’s own unfair labor practice complaint (when Activision-Blizzard claimed there were none), and sexual harassment allegations (again, when ActiBlizz said there were none).

Part of the request states, “Activision makes a number of representations in its Agreement and Plan of Merger that are obviously contradicted by accessible evidence, and others that omit crucial material, thereby making them deceptive.”

Because the SEC was already looking at Activision Blizzard as part of a federal investigation, this request for action may be granted — if the forthcoming disclosure letter does not reverse any of the company’s previously submitted assertions.

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The “blizzard under federal investigation” is a story that has been going on for quite some time. The union, the United Steelworkers Union, has filed a lawsuit against Activision-Blizzard’s statements about their acquisition of King Digital Entertainment.

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