In January 2019, Activision-Snowstorm terminated the contract of its leader monetary officer, Spencer Neumann. Activision did not say why Neumann was once fired, simplest that it was once a “reason unrelated to the Corporate’s monetary reporting or disclosure controls and procedures.” A Reuters document on the time, on the other hand, mentioned that it was once as a result of Neumann was once leaping send to Netflix.
Two years later, now we have affirmation that that is actually what took place, as a result of Activision is now suing Netflix for poaching its former govt. The lawsuit, to be had by way of The Hollywood Reporter, says Netflix “knowingly brought about Neumann to breach his employment contract with Activision,” and worse, “engaged in tortious behavior when Activision—with Neumann’s help—was once negotiating with Netflix over a industrial partnership to distribute Activision’s linear media content material.”
The go well with says Activision employed Neumann as CFO in Would possibly 2017 for a time period of 3 years, with an non-compulsory one-year extension. In alternate for “considerable reimbursement,” Neumann agreed to more than a few contractual tasks that dedicated him, in an excessively basic sense, to do his best possible for Activision and no longer make the most of his place for his personal private achieve.
That dedication was once short-lived. After Netflix “intentionally and maliciously” labored to pry Neumann clear of Activision—an effort that Netflix co-CEO Reed Hastings was once “in my opinion concerned” with, in keeping with the criticism, and incorporated an be offering to pay for his criminal illustration and canopy any consequences coming up from the breach of contract—he jumped send. Neumann’s contract ran till April 30, 2020, however he resigned from Activision on December 31, 2018; two days later, Netflix introduced that he were appointed as its new CFO.
The lawsuit says that on account of Neumann’s unexpected departure, it was once pressured to pay thousands and thousands of greenbacks extra to his alternative than Neumann himself would have earned. Activision claims it additionally needed to pony up thousands and thousands extra to different executives than they had been because of earn with a purpose to stay them from bolting too. Activision needs Netflix to hide the ones and different prices, and additionally it is after punitive damages and an injunction in opposition to what it says is “a development and apply of unlawfully inducing staff of different competition to breach their fixed-term contracts.”
“Until Netflix is restrained through suitable injunctive aid from proceeding to raid Activision’s staff through focused on its executives who’ve voluntarily entered into enforceable and ongoing fixed-term employment agreements, Activision will proceed to endure irreparable hurt, together with, however no longer restricted to, shedding the price of its legitimate fixed-term employment agreements, injury to its trade popularity, staff, and trade alternatives, whilst Defendants will proceed to be unjustly enriched through their tortious and unjust behavior,” the go well with says.
I have reached out to Netflix for remark at the lawsuit and can replace if I obtain a answer.