Overview
- The former CEO denied allegations he rushed the Microsoft sale to avoid consequences from sexual misconduct scandals in an Answer filed in Delaware.
- He lodged counterclaims alleging AP7 acted with ulterior motives, citing AP7 board vice chair Emma Ihre’s then‑position at Embracer as a potential conflict of interest.
- Embracer issued a categorical denial of any coordination with AP7, saying no agenda or instructions were directed via Ihre or to the fund.
- Kotick’s filing points to an approximately 15% rise in Embracer’s stock after AP7’s complaint was public in November 2022 to argue benefit, a contention not adjudicated.
- The litigation remains active in the Delaware Court of Chancery, and Kotick’s filing also repeats claims about union‑related complaints and asserts a sharp Call of Duty sales decline without providing supporting data.