Activision Blizzard CEO's duty to disclose sexual misconduct claims falls into legal 'gray area,' expert says

Yahoo Finance2021-11-21

On Wednesday, a group of Activision Blizzard (ATVI) shareholders joined a chorus seeking to oust longtime CEO Bobby Kotick after The Wall Street Journal reported that he knew of sexual harassment and ...

网页链接

免责声明：本文观点仅代表作者个人观点，不构成本平台的投资建议，本平台不对文章信息准确性、完整性和及时性做出任何保证，亦不对因使用或信赖文章信息引发的任何损失承担责任。

精彩评论

Gackky
2021-11-22
Gackky
investors want to know everything.. disclose everything to the public.. let them make the decision [LOL]
PanaCota
2021-11-22
PanaCota
Ok
Spaclover
2021-11-21
Spaclover
T
- Spaclover:
  T
Dynamism
2021-11-21
Dynamism
K
- Holla:
  Ok
Sam87
2021-11-21
Sam87
Good
- Dynamism:
  k
PC21
2021-11-21
PC21
Basic Fairness needed.
- PC21:
  make this world better

发表看法

358

{"i18n":{"language":"zh_CN"},"isChannel":false,"data":{"share":"https://www.laohu8.com/m/news/2184910828?lang=zh_CN&edition=full","thumbnail":"","is_english":true,"pubTime":"2021-11-21 09:52","share_image_url":"https://static.laohu8.com/5f26f4a48f9cb3e29be4d71d3ba8c038","id":"2184910828","market":"us","top_or_hot":-1,"title":"Activision Blizzard CEO's duty to disclose sexual misconduct claims falls into legal 'gray area,' expert says","media":"Yahoo Finance","content":"<div>\n<p>On Wednesday, a group of Activision Blizzard (ATVI) shareholders joined a chorus seeking to oust longtime CEO Bobby Kotick after The Wall Street Journal reported that he knew of sexual harassment and ...</p>\n\n<a href=\"https://finance.yahoo.com/news/activision-blizzard-ceo-duty-to-disclose-sexual-misconduct-124230781.html\">网页链接</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Activision Blizzard CEO's duty to disclose sexual misconduct claims falls into legal 'gray area,' expert says</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nActivision Blizzard CEO's duty to disclose sexual misconduct claims falls into legal 'gray area,' expert says\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-11-21 09:52 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/activision-blizzard-ceo-duty-to-disclose-sexual-misconduct-124230781.html><strong>Yahoo Finance</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>On Wednesday, a group of Activision Blizzard (ATVI) shareholders joined a chorus seeking to oust longtime CEO Bobby Kotick after The Wall Street Journal reported that he knew of sexual harassment and ...</p>\n\n<a href=\"https://finance.yahoo.com/news/activision-blizzard-ceo-duty-to-disclose-sexual-misconduct-124230781.html\">网页链接</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4524","symbol_name":"宅经济概念","start_time":0,"source_url":"https://finance.yahoo.com/news/activision-blizzard-ceo-duty-to-disclose-sexual-misconduct-124230781.html","article_id":"2184910828","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2184910828","pubTimestamp":1637459568,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"On Wednesday, a group of Activision Blizzard (ATVI) shareholders joined a chorus seeking to oust lon","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4524":"宅经济概念","BK4561":"索罗斯持仓","BK4085":"互动家庭娱乐","ATVI":"动视暴雪","BK4554":"元宇宙及AR概念","BK4532":"文艺复兴科技持仓"},"translate_title":"专家说，动视暴雪首席执行长披露不当性行为指控的责任落入法律“灰色地带”","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"ATVI":0.9},"content_text":"On Wednesday, a group of Activision Blizzard (ATVI) shareholders joined a chorus seeking to oust longtime CEO Bobby Kotick after The Wall Street Journal reported that he knew of sexual harassment and rape claims at the gaming giant but failed to report some of them to the board.\nThe outcry has raised questions about Kotick's duty to disclose what he knew about sexual misconduct allegations within the video gaming company. Frustrations over the matter have been escalating since August when California's Department of Fair Employment and Housing sued Activision, alleging that female employees were subjected to sexual harassment and unequal pay.\n“Generally, the CEO, CFO, anyone at that level, does have a fiduciary responsibility, if something comes to their attention — whether it's embezzlement or sexual harassment, or whatever it might be — to inform the board,” Jeffrey Cramer, senior managing director at Guidepost Solutions, and former federal prosecutor, told Yahoo Finance.\nThe Journal reported Monday that Kotick, who's also a board member, knew but failed to tell the rest of the board about the alleged rape of a female employee of Activision’s subsidiary, Sledgehammer Games, by her male supervisor. Internal documents, the Journal's report states, show Kotick held back the extent of what he knew about complaints “of employee misconduct in many parts of the company.”\nThe rape complaint, which was reportedly settled out of court without alerting the board, adds to federal regulatory investigations into the company's handling of misconduct.\nOn Tuesday, Activision's board released a statement in support of Kotick. \"The Board remains confident that Bobby Kotick appropriately addressed workplace issues brought to his attention,\" the statement read.\nAt this stage, Cramer says, it’s not surprising that the board is maintaining public support for Kotick. Typically, the directors call for an independent investigation to find out who knew what, when, he says.\n“The board will do a thorough review, and then once the board has more information,\" Cramer said, \"that position might change.\"\n'The standards are shifting'\nCorporate law and governance experts say it's not just Kotick who can face scrutiny about who knew what, and when. It's unclear, he said, whether Kotick and the other board members could be legally liable for failing to alert shareholders and the board about alleged sexual misconduct. That's because of shifting expectations in the post #MeToo world, Douglas Chia a senior fellow at Rutgers Law School’s Center for Corporate Law and Governance, tells Yahoo Finance. Few courts, he says, have evaluated how fiduciary laws govern obligations of public company executives to disclose claims of sexual misconduct.\n“In today's environment, the standards are shifting, and there's more of an expectation that the investors want to know more earlier,” Chia says. “... There's nothing that really says what's legally required.”\nThe current legal landscape is “a very gray area” that likely invokes state corporate laws and federal securities laws that can pressure both the board and Kotick, according to Case Western Reserve University School of Law associate professor Anat Alon-Beck.\n“I put it on the board, not just on the CEO,” Alon-Beck adds. “It’s a very delicate situation because the CEOs have obligations under securities laws to report on material events. I think today, after the #MeToo movement, this is a big deal.”\nIn Delaware, where Activision Blizzard is incorporated, state corporate laws make CEOs such as Kotick, as well as board members, fiduciaries to the corporation, Alon-Beck explains. The role requires them to exercise duties of care and loyalty to shareholders and makes them liable for breaching those duties.\nUnder federal securities laws, liability can arise if a “material” disclosure is omitted — though “materiality” has no clear and consistent definition, Chia said.\n“You could have a claim that the CEO and or the board breached their duty of care because they failed to monitor what was going on at the company, from a compliance point of view on sexual misconduct,” Chia says.\nIn August, shareholders filed one such suit, claiming Activision failed to inform investors that California’s Department of Fair Housing and Employment had been looking into claims of discrimination and sexual harassment, prior to the agency's lawsuit filed that month.\nStill, requiring a CEO of a large public company to report each and every instance of misconduct to the board is not likely a standard a court would impose, Chia said. However, he added, major allegations such as rape, and patterns of sexual misconduct claims, should indeed go that far up the chain of command.\nFor Alton-Beck, reporting significant events just to the board isn’t far enough as a strategy to protect against modern legal claims. Shareholders, she suspects, are going to have to be part of the equation.\nDelaware state law requires board members to exercise oversight to avoid potential illegal conduct, she explains. In turn, the board should ensure that systems are in place within the company to help prevent illegal sexual misconduct and to learn about and investigate them, if they occur.\n“If the court finds that [Activision] breached the duty of loyalty because they didn't exercise oversight, then they need to answer for the harm that they caused the corporation,” she says. “To me, it's a clear-cut case that there's a violation of duty of loyalty here, if they failed to put a system in place.”\nYahoo Finance contacted Activision Blizzard to obtain information about its oversight policies but did not receive a comment before publication.\nShares of Activision Blizzard (ATVI) were trading at $62.50 at market close on Friday, approximately 60% down from their 52-week high of $104.53.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[{"id":872676430,"gmtCreate":1637532767426,"gmtModify":1637532768083,"author":{"id":"3574326723774097","authorId":"3574326723774097","name":"Gackky","avatar":"https://static.tigerbbs.com/5898b44bf5a31bf2b9d4e37227ed8177","vip":1,"crmLevel":3,"crmLevelSwitch":0,"authorIdStr":"3574326723774097","idStr":"3574326723774097"},"htmlText":"investors want to know everything.. disclose everything to the public.. let them make the decision [LOL]&nbsp;","listText":"investors want to know everything.. disclose everything to the public.. let them make the decision [LOL]&nbsp;","text":"investors want to know everything.. disclose everything to the public.. let them make the decision [LOL]","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":5,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/872676430","repostId":2184910828,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"CN"},{"id":872654792,"gmtCreate":1637514123148,"gmtModify":1637514123386,"author":{"id":"3581588474178431","authorId":"3581588474178431","name":"PanaCota","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":2,"crmLevelSwitch":0,"authorIdStr":"3581588474178431","idStr":"3581588474178431"},"htmlText":"Ok","listText":"Ok","text":"Ok","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/872654792","repostId":2184910828,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"CN"},{"id":872625639,"gmtCreate":1637510026949,"gmtModify":1637510027120,"author":{"id":"3565238397133271","authorId":"3565238397133271","name":"Spaclover","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":2,"crmLevelSwitch":0,"authorIdStr":"3565238397133271","idStr":"3565238397133271"},"htmlText":"T","listText":"T","text":"T","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":1,"repostSize":0,"link":"https://laohu8.com/post/872625639","repostId":2184910828,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":6668519,"gmtCreate":1637510032689,"gmtModify":1637510032774,"authorId":3565238397133271,"author":{"id":3565238397133271,"idStr":"3565238397133271","authorId":3565238397133271,"name":"Spaclover","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":872625639,"type":1,"supId":0,"prevId":0,"content":"T","text":"T","html":"T"}],"langContent":"CN"},{"id":872637288,"gmtCreate":1637500702125,"gmtModify":1637500702231,"author":{"id":"3556144692243777","authorId":"3556144692243777","name":"Dynamism","avatar":"https://static.tigerbbs.com/db9d6b46a7676559e8a7f6dec3c91c10","vip":1,"crmLevel":2,"crmLevelSwitch":0,"authorIdStr":"3556144692243777","idStr":"3556144692243777"},"htmlText":"K","listText":"K","text":"K","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":1,"repostSize":0,"link":"https://laohu8.com/post/872637288","repostId":2184910828,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":6667605,"gmtCreate":1637503578363,"gmtModify":1637503578460,"authorId":3565687171198207,"author":{"id":3565687171198207,"idStr":"3565687171198207","authorId":3565687171198207,"name":"Holla","avatar":"https://static.tigerbbs.com/c0b0e402ff8043410cc67ffccbfe2174","vip":1,"crmLevel":1,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":872637288,"type":1,"supId":0,"prevId":0,"content":"Ok","text":"Ok","html":"Ok"}],"langContent":"CN"},{"id":872639378,"gmtCreate":1637499094424,"gmtModify":1637499094495,"author":{"id":"3572775695513464","authorId":"3572775695513464","name":"Sam87","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":5,"crmLevelSwitch":0,"authorIdStr":"3572775695513464","idStr":"3572775695513464"},"htmlText":"Good","listText":"Good","text":"Good","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":4,"commentSize":1,"repostSize":0,"link":"https://laohu8.com/post/872639378","repostId":2184910828,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":6667230,"gmtCreate":1637500706249,"gmtModify":1637500706341,"authorId":3556144692243777,"author":{"id":3556144692243777,"idStr":"3556144692243777","authorId":3556144692243777,"name":"Dynamism","avatar":"https://static.tigerbbs.com/db9d6b46a7676559e8a7f6dec3c91c10","vip":1,"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":872639378,"type":1,"supId":0,"prevId":0,"content":"<u>k</u>","text":"<u>k</u>","html":"<u>k</u>"}],"langContent":"CN"},{"id":872857036,"gmtCreate":1637485327676,"gmtModify":1637485346590,"author":{"id":"4087611507686430","authorId":"4087611507686430","name":"PC21","avatar":"https://static.tigerbbs.com/a62d208e3b3c4a550849feaa8117655b","vip":1,"crmLevel":4,"crmLevelSwitch":0,"authorIdStr":"4087611507686430","idStr":"4087611507686430"},"htmlText":"Basic&nbsp;Fairness needed.","listText":"Basic&nbsp;Fairness needed.","text":"Basic Fairness needed.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":7,"commentSize":1,"repostSize":0,"link":"https://laohu8.com/post/872857036","repostId":2184910828,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":6665763,"gmtCreate":1637485346423,"gmtModify":1637485346453,"authorId":4087611507686430,"author":{"id":4087611507686430,"idStr":"4087611507686430","authorId":4087611507686430,"name":"PC21","avatar":"https://static.tigerbbs.com/a62d208e3b3c4a550849feaa8117655b","vip":1,"crmLevel":4,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":872857036,"type":1,"supId":0,"prevId":0,"content":"make this world <u>better</u>","text":"make this world <u>better</u>","html":"make this world <u>better</u>"}],"langContent":"CN"}],"isCommentEnd":false,"newsSizeData":{"likeSize":358,"commentSize":30,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":false,"deviceId":"web-server-community-laohu8-v3","version":"4.29.1","shortVersion":"4.29.1","platform":"web","vendor":"web","appName":"laohu8","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2184910828"}