Microsoft settles video gamers' lawsuit over $69 billion Activision deal

Video gamers who sued over Microsoft's $69 billion purchase of "Call of Duty" maker Activision Blizzard have settled their lawsuit claiming the blockbuster deal would harm industry competition and drive up prices.

The gamers said in a joint filing, opens new tab with Microsoft in San Francisco federal court late on Monday that they were dismissing their lawsuit with prejudice, meaning they cannot refile it.

The court filing did not reveal how the lawsuit was resolved, and the plaintiffs' attorneys did not immediately respond to a request for comment.

Microsoft in a statement said the two sides settled the case but declined to provide more details.

The lawsuit alleged Microsoft's deal to buy Activision violated US antitrust law and should be barred. The private civil case was lodged in late 2022 before the Federal Trade Commission sued unsuccessfully to stop the deal, the biggest acquisition in the history of the gaming industry.

Microsoft has denied any wrongdoing and defended the acquisition, which closed in October 2023, as beneficial to gamers.

Federal antitrust law allows consumers to sue to stop corporate transactions apart from any government lawsuits.

US District Judge Jacqueline Scott Corley previously dismissed the gamers' lawsuit but allowed them to refile a revised version.

The FTC appealed the dismissal of its case to the San Francisco-based 9th US Circuit Court of Appeals, which heard arguments in December.

The FTC has said it will also challenge the deal in an administrative case at the agency after the appeals court issues its decision.

The case is Dante DeMartini et al v. Microsoft, US District Court, Northern District of California, No. 3:22-cv-08991-JSC.

For plaintiffs: Joseph Alioto of Alioto Law Firm, and Joseph Saveri of Joseph Saveri Law Firm

For defendant: Valarie Williams and B Parker Miller of Alston & Bird, and Beth Wilkinson and Rakesh Kilaru of Wilkinson Stekloff.