Activision Blizzard: Hot Settlement in a Chilly Venue

Mike Lange, Esq.
August 31, 2026

Activision Blizzard’s $250M Delaware Chancery Court settlement pays roughly $0.30 per share with no claim form required. Here are five things shareholders should know about eligibility, distribution, and what the case signals for 2026.

 

#1, Size: The class action recovered just $0.30 per share, or 0.3% above the $95/share merger consideration.  However, across all shares, the absolute dollar settlement amount is $250M, ranking among the largest such recoveries after the 2023 $1B Dell settlement, the largest so far.  Your actual per share recovery will be reduced by amounts used to compensate the lawyers and administer the settlement.  While we don’t yet know what counsel will request, or what the court will award, it could be around 26%, or $0.078 per share, based on the award in Dell.

 

#2, No Claim Form: Like other Delaware class actions that challenge merger consideration paid to shareholders, the recovery here will be distributed largely via DTC participants.  You don’t need to submit a claim form.  If eligible (see below), you will either get paid directly (if you held shares in your name) or your broker or other nominee will credit your account (if you held shares in their name).  However, if you were a share borrower when the merger closed, get out your checkbook as you will likely have to pay the lender of those shares the final per share amount net of attorney fees and expenses.

 

#3, Some Class Members Won’t Share: This is a non-opt-out class including:

All former holders of Activision common stock who held Activision shares at any time from the announcement of the Merger Agreement on January 18, 2022 through the closing of the Merger on October 13, 2023, including all persons or entities who (i) purchased or otherwise acquired or (ii) sold or otherwise forfeited Activision common stock during the Class Period …

However, under the Distribution Plan, the only class members receiving distributions will be those who held when the merger closed and received or were eligible for the $95 per share in cash.  Everyone else has their claims extinguished for no consideration.

 

#4, European Leadership: The lead plaintiff here is Sjunde AP-Fonden.  Also known as AP7 or the Seventh AP Fund, it is a state-managed default investment option for the Swedish premium pension system.  We’re seeing a trend of increased non-US fund involvement in federal securities class action and Delaware Chancery Court litigation.  Why?  Many non-US funds – particularly in the UK and Europe – think the US is experiencing a governance crisis.  They’re concerned about

  • Reduced SEC and other agency enforcement under the Trump administration,
  • The rise of Texas, Arizona, and other states trying to dethrone Delaware as the dominant state of domicile with new laws to better insulate management from suit, and Delaware’s responsive efforts to similarly change its laws, and
  • The declining diversity, equity, and inclusion commitment by US companies and US investors in their investment and stewardship activities. As a result, some feel the US is almost an un-investible market for them.

They want change.  So, in response, they’re getting more involved here with the encouragement of the US plaintiff bars.

 

#5, The First Chapter: As here, Delaware class actions frequently start with Section 220 books and records requests (the number referring to the Delaware law giving shareholders the right to demand inspection).  For many funds, this is when they first get involved as there’s little burden and they can then review and assist counsel in determining whether there are sufficient grounds to proceed.  However, planned record requests lack public visibility, so interested funds need a system for alerting them to what’s happening.

Record requests are the fuel for these cases.  In addition to changing its laws to better insulate management, last year, the Delaware legislature amended Section 220 to make it harder for shareholders to obtain records.  The request here was made under the earlier, more liberal rules.  It remains to be seen what impact the changes last year will have on future matters.

In sum, besides its financial benefits, the Activision Blizzard settlement is a good example of trends to watch in 2026 and beyond.

For more information on recent Delaware law changes, please see Pendulums: The Impact of SB21 on Delaware Securities Class Actions

For more information on Delaware Chancery Court cases in development, please ask about FRT’s alerting service.

For more visibility into Delaware case settlements including their distribution timing, please ask about FRT’s no claim required monitoring.

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