Activision Blizzard Settles Civil Rights Lawsuit Over Pay Discrepancies and Harassment

Summary

  • The Civil Rights Department of California (CRD) launched a lawsuit against the company behind the “Call of Duty”, Activision, post a two-year-long investigation into the allegations of routine underpayment, failing to promote female employees and tolerating sexual misconduct.
  • A settlement is underway, subjected to court’s approval, under which Activision has agreed to lend monetary relief to their female employees and contractors in California from 12th October 2015 to 31st December 2020, and to enforce fair wage and promotional practices.
  • Activision issued a statement expressing that neither any independent investigation nor any court substantiated claims about widespread sexual harassment within the company.
  • The company also affirmed no evidence was found indicating their board or chief executive dealing improperly with workplace misconduct cases.
  • In 2021, Activision settled similar allegations made by the Equal Employment Opportunity Commission, agreeing to pay up to $18 million.

Settlement by Activision Blizzard

The California Civil Rights Department (CRD) pursued a lawsuit against the creator of “Call of Duty”, Activision, after two years of scrutinizing allegations of underpaying female employees, failing to present promotional prospects and permitting sexual harassment.

Ensure Fair Practices

Activision has agreed to assess and implement fair payment and promotion protocols and provide financial aid to women who worked for them directly or on a contractual basis in California from October 12, 2015, through December 31, 2020. This is part of a settlement that awaits the court’s approval, as per CRD’s statement on Friday.

Acknowledgement by CRD

In their Friday statement, Activision noted the CRD’s direct acknowledgment in the settlement that neither an independent investigation nor a court had confirmed allegations of extensive or systemic sexual harassment at the organization.

No Wrongdoing by Board or CEO

Activision also specified that there was no proven misconduct of their board or chief executive in terms of handling workplace misbehaviors.

Previous Settlement

In an agreement similar to the one from 2021, Activision, which Microsoft bought in October for approximately $69 billion, consented to pay up to $18 million to address similar complaints made by the Equal Employment Opportunity Commission.

This situation might influence Activision’s stock price, hence becoming critical for forex traders and equity investors.

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