Activision Blizzard Settles Discrimination Claims for $54 Million
Activision Blizzard, the maker of popular video games such as Call of Duty and Overwatch, has agreed to pay approximately $54 million to settle discrimination claims brought by California’s civil rights agency on behalf of women employed by the company.
The settlement, which is subject to court approval, addresses allegations that Activision Blizzard discriminated against women in various ways, including denying promotion opportunities and paying them less than male counterparts for similar work.
The accusations of workplace discrimination had a negative impact on Activision’s stock price in 2021, leading to Microsoft’s eventual takeover bid in January 2022. Microsoft closed its $69 billion deal to acquire Activision in October after overcoming opposition from antitrust regulators and rivals.
Allegations of Discrimination
The California Civil Rights Department sued Activision Blizzard in July 2021, claiming that female employees faced ongoing sexual harassment, had limited access to leadership positions, and received lower pay compared to male colleagues.
In response to the lawsuit, employees voiced their concerns about harassment and discrimination through petitions and staged a walkout.
Settlement Terms
The settlement covers women who worked for Activision Blizzard between October 12, 2015, and December 31, 2020, including both hires and independent contractors. These individuals may be eligible for compensation, with $45.75 million of the settlement amount allocated for payouts.
As part of the settlement, Activision Blizzard has committed to implementing fair pay and promotion practices within the company.
Company’s Response
In a statement, Activision Blizzard expressed its appreciation for the importance of the issues addressed in the agreement and its dedication to full implementation of the new obligations. The company also highlighted that the California Civil Rights Department agreed to withdraw the sexual harassment allegations as part of the amended complaint.
The settlement agreement also makes it clear that no court or independent investigation has substantiated claims of systemic or widespread sexual harassment at Activision Blizzard or any wrongdoing by the board of directors and CEO related to harassment, retaliation, or discrimination.
Previous Settlements
This settlement follows a previous agreement in which Activision Blizzard settled sexual harassment and discrimination claims brought by the U.S. Equal Employment Opportunity Commission for $18 million. Additionally, the company paid $35 million to settle charges brought by the Securities and Exchange Commission related to disclosure requirements and whistleblower protection.
