Activision Hit With Derivative Suit Over Sexual Harassment (1)

An Activision Blizzard Inc. investor hit company executives with a derivative shareholder lawsuit Friday in California state court, alleging the company’s reputation was irreparably damaged by allegations of workplace sexual harassment, and seeking corporate governance changes.

The lawsuit, filed in Los Angeles Superior Court, comes after a July announcement by the California Department of Fair Employment and Housing that an investigation into the company concluded it fosters a “frat boy” culture in which female employees are sexually harassed, discriminated and retaliated against.

The complaint names Blizzard founder and CEO Robert Kotick, chairman of the board Brian Kelly, and company director ...