Overview
- Microsoft agreed on Tuesday to a preliminary $250 million settlement with Swedish pension fund Sjunde AP‑Fonden (AP7) to resolve a 2022 class-action suit over the Activision Blizzard sale.
- Under the filing Microsoft will fund 40 percent of the payment and directors' and officers' liability insurance will cover the remaining 60 percent, with a judge to approve distribution details.
- The settlement filing records that Microsoft denies systemic workplace misconduct at Activision and says it is settling to avoid the burden and distraction of further litigation.
- AP7 acknowledged in the filing that some of its claims relied on media reporting and noted the California Civil Rights Department's related allegations were not substantiated in court and were withdrawn.
- The deal closes a post‑merger legal dispute tied to the October 2023 acquisition and will produce only a small per‑share payout if approved, while removing the contested factual claims between Kotick, AP7 and Embracer from further court fights.