Activision Blizzard CEO Bobby Kotick speaks on the CNBC Evolve convention November nineteenth in Los Angeles.

Jesse Grant | CNBC

Activision Blizzard shares dropped greater than 5% Tuesday after a report from The Wall Street Journal alleged CEO Bobby Kotick knew about sexual misconduct allegations on the videogame firm.

According to the report, Kotick failed to tell the board of administrators concerning the allegations on many events, together with an alleged rape, the Journal reported.

An Activision spokesperson instructed CNBC in an announcement that the WSJ report was “inaccurate” and a “deceptive view” of the corporate’s CEO.

“We are disillusioned within the Wall Street Journal’s report, which presents an inaccurate and deceptive view of Activision Blizzard and our CEO,” an Activision Blizzard spokesperson mentioned. “Instances of sexual misconduct that had been delivered to his consideration had been acted upon.”

In a video message despatched to staff Tuesday, Kotick addressed the report and mentioned anybody who doubts his “conviction to be essentially the most welcoming, inclusive office would not actually admire how necessary that is to me,” in accordance with a transcript posted to the corporate’s web site.

Activision’s board of administrators backed Kotick in an announcement Tuesday and mentioned it “stays assured” that the CEO “appropriately addressed” work points delivered to his consideration.

The information comes because the online game firm faces a sequence of investigations over its office practices, together with the way it dealt with allegations of sexual misconduct and discrimination.

In July, the California Department of Fair Employment and Housing filed a lawsuit that alleged the corporate has a “frat boy tradition” that is a “breeding floor for harassment and discrimination in opposition to girls.”

Blizzard President J. Allen Brack left the corporate shortly after the information. He was talked about within the lawsuit as allegedly being conscious as early as 2019 that staff had been leaving due to sexual harassment on the firm.

As of Monday’s shut, Kotick owned 4,094 Activision shares valued at $285 million, in accordance with FactSet. His compensation package deal in 2020 was valued at greater than $154 million, the Journal beforehand reported.

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