WILMINGTON, DELAWARE, May 22 (Reuters) - Activision Blizzard shareholders reached a $250 million settlement over allegations that former executives of the company and Microsoft shortchanged them when Microsoft acquired the game maker for $75.4 billion in 2023, according to a court document filed in a Delaware court on Friday.

Shareholders of the video game maker, led by the Swedish pension fund Syund AB Funden, accused former Activision executives, including CEO Bobby Kotick, of breaching their fiduciary duties to investors by agreeing to a takeover price of $95 per share.

Shareholders said Kotick rushed the merger so he could keep his job and receive $400 million in benefits for changing management after the acquisition.

Microsoft and Kotec filed counterclaims against Syound AB Fondun, which will also be resolved in the settlement agreement.

The court document indicated that both parties denied the charges against them.

The defendants said they agreed to the settlement to avoid being bogged down in litigation, and Siond said he agreed to the settlement because the amount was fair.

The settlement must be approved by Judge Kathleen McCormick, who is overseeing the case.

The court document indicated that Microsoft would bear 40 percent of the settlement costs, while the remaining percentage would be paid through directors' and executive liability insurance.

This was the biggest deal in the video game industry when it was revealed in 2022, and it gave Microsoft the ability to compete with the Sony group.