The highly publicized case alleging a sexual harassment culture at Activision Blizzard has been settled by a California regulator.According to a news statement from California’s Civil Rights Department (CRD), the gaming corporation, which is now owned by Microsoft, will pay roughly $54 million as part of the settlement.
The complaint was brought in July 2021 by the CRD, which was formerly known as the Department of Fair Employment and Housing, or DFEH. The lawsuit claimed that Activision Blizzard maintained a “frat boy” culture in which women were harassed sexually and discriminated against based on their gender.Following the lawsuit, staff members departed, executives—including Blizzard president J. Allen Brack and the company’s former SVP of HR—left, and The Wall Street Journal revealed months later that CEO Bobby Kotick had been aware of complaints of sexual misconduct for years.
As part of the settlement deal, the CRD did, however, state that there was no proof of Kotick’s misconduct and that “no court or any independent investigation has substantiated any allegations” of sexual harassment at Activision Blizzard, according to TNY.(The business informed the SEC that there was “no evidence to suggest” that senior officials disregarded complaints of gender harassment, according to an internal probe.)On Friday, the WSJ published a piece regarding the litigation.
If a court approves the settlement, Activision Blizzard will pay about $54,875,000 to “cover direct relief to workers and litigation costs,” with $45,750,000 of that going to “a settlement fund dedicated to compensating workers,” the CRD says.
Microsoft declared its intention to buy Activision Blizzard for $68.7 billion a few months after California filed a lawsuit.That purchase eventually concluded in October after encountering many regulatory obstacles.Activision Blizzard will retain Kotick through the end of the year.Activision Blizzard and the US Equal Employment Opportunity Commission reached a $18 million settlement in 2022 after a different complaint claimed the corporation engaged in sexual harassment and discrimination. The settlement was authorized by a judge.