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The gaming giant alleges that “Netflix’s criminal and unethical conduct is intentional and a directive ‘from above’.”
Netflix faces yet another executive poaching lawsuit, this time from gaming giant Activision Blizzard over the departure of CFO Spencer Neumann.
Activision claims Netflix tricked Neumann into breaking his employment contract while the CFO was actively involved in negotiations with the streamer on behalf of the games company. This marks the third major entertainment company, after Fox and Viacom, to allege Netflix is illegally poaching employees.
Neumann had been working for Activision Blizzard for only 18 months when, at the end of 2018, the gaming giant revealed via a securities deposit that it was putting the executive on leave with the intention of firing him. Netflix, which is known to be ruthless when it comes to saying goodbye to seasoned executives, later revealed it hired Neumann to replace longtime CFO David Wells. Prior to joining Activision, Neumann held senior positions at Disney and Providence Equity Partners.
“Netflix’s illegal behavior towards Neumann is not an anomaly,” writes O’Melveny & Myers lawyer Daniel Petrocelli in the complaint, which is published below. “On the contrary, Netflix has a clear tendency to only care about attracting and employing who wants Netflix, whether or not they break the law along the way.”
Petrocelli – who represented Fox in his poaching lawsuit against Netflix – argues that Neumann’s employment contract forced him to work for Activision until at least April 30, 2020, and Netflix was not only aware of the contract, but also offered to pay the CFO’s legal fees if he was sued for his exit.
Activision also alleges that Netflix CEO Reed Hastings was “personally involved” in the recruiting and hiring of Neumann, showing that “Netflix’s” criminal and unethical conduct is intentional and directive ” coming from above “.”
Activision is suing for intentional interference with the contract, unfair competition and aiding and abetting breach of a fiduciary duty. He is seeking compensatory and punitive damages and a permanent injunction prohibiting Netflix from soliciting its contracted employees.
Meanwhile, there is a summary judgment motion hearing in Netflix’s dispute with Viacom next week and an appeal pending in its battle with Fox.
Netflix has yet to respond to a request for comment on the complaint, but its position in court has been that these types of executive contracts are unenforceable under California law.
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