Wal-Mart and GameStop were again Activision’s largest customers i...

represented a somewhat higher percentage of its sales. Wal-Mart accounted for about 14 percent of Activision sales this time, down from 22 percent. GameStop accounted for about 13 percent of Activision sales, up from 8 percent, the publisher said. Activision’s work force grew to about 2,640 from about 2,125 a year ago, it said. At year-end it had about 1,200 employees in product development, versus 500 each in North American and international publishing, 170 in operations, corporate finance and administration, and 270 in European distribution, it said. Separately, a June 30 court hearing will address a suit that Activision investor Wayne County Employees’ Retirement System filed Feb. 8 against the publisher and Vivendi in Delaware Chancery Court, Activision said. The suit challenges the pending merger of Activision and Vivendi Games (CED Dec 4/07 p3), claiming that Activision board members failed in their fiduciary role in the matter by “surrendering” negotiations to “conflicted management,” that those breaches were aided and abetted by Vivendi and that a preliminary proxy statement contained false and misleading statements. Activision and Vivendi moved last month to dismiss the suit and the June 30 hearing will address that, as well as the plaintiff’s motion for a preliminary injunction, Activision said. Final briefings on the motions are to be filed with the court June 27, it said. Separately, a settlement was reached in principle that would end a series of derivative stockholder suits that had been consolidated into one dispute, Activision said. The suit accused some current and former Activision board members and officers of illegal stock option practices. Both sides signed a “Stipulation of Settlement” May 8 in which neither Activision nor any of the settling parties admitted to any liability or wrongdoing, Activision said. But Activision would pay $10 million to plaintiffs’ attorneys for their fees and expenses, and those lawyers will also be entitled to 15 percent -- up to $750,000 -- of any payment made by Activision’s insurance carriers in connection with the settlement, it said. The publisher had yet to reach agreements with its insurers related to the settlement, it said. The settlement was filed May 12 and was preliminarily approved by U.S. District Court, Los Angeles, Activision said. The settlement is still subject to final court approval and a hearing, at which shareholders will have the opportunity to object, is scheduled for July 21.