Activision Blizzard has reached a settlement with California’s Civil Rights Department to resolve a lawsuit alleging workplace discrimination, pay disparities, and a culture of sexual harassment at the video game company.
The settlement involves Activision Blizzard paying $54 million and committing to implementing measures to ensure fair pay and equitable promotions. Approximately $46 million of the funds will compensate workers, particularly women who were employees or contractors with the company from 2015 to 2020. The settlement is still subject to court approval.
Kevin Kish, Director of the California Civil Rights Department, stated that the agreement, if approved by the court, would provide direct relief to Activision Blizzard workers. The lawsuit was filed in 2021, alleging violations of the state’s Equal Pay Act and Fair Employment and Housing Act.
As part of the settlement, the California Civil Rights Department will withdraw its allegations, and it was noted in the agreement that no court or independent investigation has substantiated claims of systemic or widespread sexual harassment at Activision Blizzard. The investigation also did not produce evidence of illegal behavior by the company’s board, executives, or CEO, Bobby Kotick.
Earlier this year, Activision Blizzard agreed to a $35 million settlement with the SEC over its failure to implement necessary controls to address workplace misconduct, leading to concerns about a toxic workplace culture and employee walkouts.
The series of events culminated in Microsoft’s acquisition of Activision Blizzard for $68.7 billion, marking a pivotal moment for the company. Longtime CEO Bobby Kotick is set to depart at the end of the year.
