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Activision Blizzard Settles Discrimination Claims for $54 Million
In a significant development, Activision Blizzard has consented to pay approximately $54 million to settle discrimination claims filed by California’s civil rights agency on behalf of women employed by the prominent video game maker.
Background
- Company Profile:
- Activision Blizzard, known for games like Call of Duty, Overwatch, and World of Warcraft, faced allegations of discrimination against women within the company.
- Impact on Stock and Microsoft’s Acquisition:
- Workplace discrimination allegations negatively impacted Activision’s stock in 2021.
- Microsoft capitalized on this situation with a successful $69 billion takeover bid in January 2022.
California Civil Rights Lawsuit
- Filing Date:
- California’s civil rights agency filed a lawsuit in July 2021, citing constant sexual harassment, gender-based leadership disparities, and unequal compensation for female employees.
- Employee Response:
- Activision employees spoke out against harassment, signing petitions and staging a walkout to criticize the company’s defensive reaction to the lawsuit.
Settlement Terms and Eligibility
- Settlement Amount:
- The $54 million settlement, pending court approval, addresses the discrimination allegations and compensates eligible women who worked for the company between Oct. 12, 2015, and Dec. 31, 2020.
- Allocation for Payouts:
- Approximately $45.75 million is allocated for compensating women who were either hires or independent contractors during the specified period.
Company Commitments
- Fair Pay and Promotion Practices:
- Activision Blizzard commits to Implementing Fair Pay and promotion practices within the company as part of the settlement terms.
- Statement from Activision Blizzard:
- The company acknowledges the importance of the settlement’s addressed issues and expresses dedication to fulfilling the new obligations outlined.
Legal Clarifications in Settlement Agreement
- Withdrawal of Sexual Harassment Allegations:
- The settlement agreement involves an amended complaint by the California Civil Rights Department, withdrawing sexual harassment allegations against Activision Blizzard.
- No Substantiated Allegations:
- The agreement states that no court or independent investigation has substantiated systemic or widespread sexual harassment claims at Activision Blizzard.
Previous Settlements
- Equal Employment Opportunity Commission (EEOC) Settlement:
- In September 2021, Activision settled sexual harassment and discrimination claims with the EEOC, establishing an $18 million fund for affected individuals.
- Securities and Exchange Commission (SEC) Settlement:
- Earlier this year, Activision agreed to a $35 million settlement with the SEC over disclosure and whistleblower protection rule violations.
Note: Activision Blizzard neither admits nor denies findings in settlements, maintaining a commitment to address workplace issues.