Activision’s Work Atmosphere, Alleged Sexual Harassment Contributed to Worker’s Demise, Says New Lawsuit

Kerri Moynihan, whose 2017 dying was dominated a suicide, had been the topic of sexual harassment, together with an incident by which co-workers handed round a photograph of her vagina, the criticism alleges. Her dad and mom, Paul and Janet Moynihan, had been unaware of these issues, it says, till a California company filed go well with in opposition to Activision in July alleging widespread sexual harassment on the firm. The corporate has disputed the company’s allegations.

The Moynihans allege Activision was “a considerable issue within the wrongful dying” of their daughter and for having “fostered and permitted a piece atmosphere by which sexual harassment was pervasive and for failing to forestall such harassment,” says the criticism, filed in state courtroom in Los Angeles.

Activision, recognized for its Name of Responsibility, World of Warcraft and Sweet Crush franchises, is within the strategy of being purchased by

Microsoft Corp.

for $75 billion in an all-cash deal that’s anticipated to shut by mid 2023, pending regulatory approval. The businesses first mentioned merging days after a November Wall Road Journal article reported that Activision’s longtime Chief Government,

Bobby Kotick,

knew about allegations of worker misconduct throughout the corporate that he didn’t temporary the board on, including to stress on the corporate and its inventory.

A spokesman for Activision mentioned the corporate is “deeply saddened by the tragic dying of Ms. Moynihan” and that it’ll deal with the criticism by means of regular authorized procedures. The household declined to remark by means of an lawyer.

Activision has disputed the Journal’s November article, saying it paints “a deceptive view of Activision Blizzard and our CEO” and that it “ignores essential adjustments underway to make this the business’s most welcoming and inclusive office.”

The Moynihans’ go well with alleges that the couple’s daughter, who was 32 years outdated and had labored at Activision in an accounting function for six years earlier than her dying, was concerned in a sexual relationship along with her married male supervisor, Greg Restituito. The go well with additional alleges that Activision and Mr. Restituito, weren’t absolutely cooperative with investigators for the Anaheim Police Division and that Mr. Restituito lied to a detective.

Mr. Restituito couldn’t be instantly reached for remark.

The go well with alleges that no foundation was given within the coroner’s report for figuring out Kerri Moynihan had taken her personal life as a result of she didn’t go away behind a suicide be aware or in any other case point out plans to commit suicide, amongst a number of different causes.

The lawsuit says Ms. Moynihan spent a part of the night earlier than her dying at a resort bar with co-workers, and spoke with Mr. Restituito within the resort foyer at 1:24 a.m. It says that at about 1:31 a.m., Mr. Restituito despatched her a textual content message stating: “Please don’t do this. Not tonight. Give it some thought and make your choice when your thoughts is obvious.”

She left the bar about 20 minutes later and returned to her room at

Walt Disney Co.

’s Grand Californian Resort & Spa. She died there someday round 2 a.m., the criticism says.

Mr. Restituito was staying throughout the corridor from Ms. Moynihan on the resort, the criticism says. He contacted resort safety the following morning and so they found her physique.

The criticism says that Activision refused to show over to police Ms. Moynihan’s work-issued laptop computer or give them entry to Mr. Restituito’s work-issued cellphone. It additionally says Activision advised the police that Mr. Restituito’s cellphone had been “wiped” and that Anaheim police didn’t deal with the room the place Ms. Moynihan died as a doable crime scene or search any warrants.

An Anaheim police spokesman mentioned the division stands by its investigation and that it extends its sympathy to the household.

Activision’s plans to promote itself to Microsoft come as federal and state regulators have widened their investigations into how its management has dealt with office misconduct claims, the Journal reported final month. These regulators embrace the California company that sued Activision in July, the Division of Honest Employment and Housing, and the Securities and Change Fee. Activision has disputed the California regulator’s case and mentioned it’s cooperating with the SEC probe.

—Kirsten Grind contributed to this text.

Write to Sarah E. Needleman at sarah.needleman@wsj.com