Activision Blizzard Settles $54 Million Workplace Discrimination Suit
Santa Monica-based gaming giant Activision Blizzard has reached a $54 million settlement with California’s Civil Rights Department, concluding a two-year legal battle. The settlement addresses allegations of gender discrimination, pay disparities, and a culture of sexual harassment within the company.
Settlement Terms
Activision Blizzard has agreed to pay $54 million as part of the settlement and has committed to implementing measures to ensure fair pay and equitable promotions. Allocating the majority of the funds, around $46 million, to compensate workers, specifically women employed or contracted with the company from 2015 to 2020—the settlement awaits court approval, with its details currently undergoing finalization.
California Civil Rights Department Director Kevin Kish expressed optimism about the settlement, stating,
“If approved by the court, this settlement agreement represents a major step forward and will bring direct relief to Activision Blizzard workers.”
Investigation Findings
The settlement also emphasizes that the California Civil Rights Department’s investigation found no evidence of illegal behavior by the company’s board, executives, or CEO, Bobby Kotick. Additionally, Activision Blizzard previously settled a $35 million case with the SEC over its failure to address workplace misconduct complaints adequately.
Activision Blizzard will hire an external consultant to evaluate compensation, promotion policies, and training materials as part of the resolution. This move aims to address concerns raised during the legal proceedings and foster a healthier work environment.
Industry Impact and Controversies
The legal battle initiated a turbulent period at Activision Blizzard, marked by employee walkouts, executive controversies, and share price fluctuations. Microsoft’s subsequent acquisition of the company for $68.7 billion, reflects the far-reaching consequences of the controversies.
As the gaming industry evolves, this settlement underscores the importance of addressing workplace issues. It highlights the importance of promoting a culture of inclusivity within major gaming corporations. The finalization of the settlement is expected to bring relief to affected workers.
