Activision faces shareholder lawsuit

Activision is facing a lawsuit filed by one of its shareholders, alleging improprieties in the company's issuance of stock options and targeting both former and current executives in the latest backdating scandal.

Echoing the recent news of an SEC investigation into the issuance of stock options at Take-Two Interactive, the lawsuit alleges that Activision backdated its stock options to the financial benefit of numerous executives and the detriment of the company and its shareholders.

The suit has been filed by shareholder Ryan Vazquez, with 16 defendants including CEO and co-chairman Robert Kotick, co-chairman and former CFO Brian Kelly, director and former president and CEO Ronald Doornink, and several current and former officers and directors of the publisher.

Amongst other things, the suit alleges that Kotick and others colluded to backdate stock options for their own financial gain and improperly recorded and accounted for the stock options in providing information to shareholders and the public.

Vazquez claims that the inappropriate actions of the executives and directors has cost the company millions of dollars, calling for the defendants to give up stocks and any money gained from their issuance, provide "equitable relief" for violating their duty to the company's shareholders and pay for damages and all associated legal costs.

Activision has yet to issue any formal statement on the matter, offering nothing more than an acknowledgement of the case and confirming that "the Company is reviewing the allegations in the complaint and will respond appropriately."