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Activision Stock Drops on Report of Alleged Workplace Misconduct

CEO Bobby Kotick failed to inform Activision's board about some incidences of alleged sexual misconduct, according to a report. Activision disputed Tuesday's report.
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Shares of video game maker Activision Blizzard  (ATVI) - Get Activision Blizzard, Inc. Report dropped Tuesday following a Wall Street Journal report about alleged sexual misconduct at the company that was brought to the attention of CEO Bobby Kotick. 

Kotick has said that he wasn't aware of many of the allegations, but internal documents -- including memos, emails and regulatory requests -- suggest a different story, according to the Journal which viewed the documents. 

The longtime company CEO knew about allegations in many parts of the company and didn't inform Activision's board of all that he knew, according to the Journal. 

However, Activision denies the allegations in the Journal article.

"We are disappointed in the Wall Street Journal’s report, which presents a misleading view of Activision Blizzard and our CEO," a company spokesperson told TheStreet.

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The company says that instances of alleged sexual misconduct that were brought to his attention were "acted upon," and that the article ignores the changes that the company has undertaken to make its work environment safer and more inclusive. 

Shares of Activision on Tuesday dropped 5% to $66.87 at last check.

Activision is currently the subject of multiple regulatory investigations into alleged sexual assaults and the mistreatment of female employees. 

Kotick has been subpoenaed in a U.S. Securities and Exchange Commission investigation into how the company handled reports of alleged misconduct. 

In July, the company was hit with a lawsuit from the California Department of Fair Employment and Housing, alleging the company's "pervasive frat boy workplace culture.

Activision has 10,000 employees and a market cap of about $54 billion.