(LOS ANGELES) – Activision Blizzard has agreed to pay $54 million to settle discrimination claims made by California’s civil rights agency on behalf of the video game company’s female employees.
The settlement, which is subject to court approval, resolves allegations that the maker of Call of Duty, Overwatch, World of Warcraft, and other video games “discriminated against women at the company, including denying promotion opportunities and paying them less than men for doing substantially similar work,” according to the California Civil Rights Department, which announced the agreement late Friday.
Allegations of employment discrimination aided Activision’s stock price decline in 2021, laying the path for Microsoft’s eventual takeover attempt in January 2022.
Activision Blizzard To Pay $54 Million To Settle California State Workplace Discrimination Claims
The software behemoth, which controls the Xbox gaming system, completed its $69 billion acquisition of Activision in October after overcoming global objections from antitrust regulators and competitors.
In July 2021, California’s civil rights agency filed a lawsuit against Santa Monica-based Activision Blizzard, alleging that female employees were subjected to constant sexual harassment, that few women were named to leadership positions, and that when they were, they earned less salary, incentive pay, and total compensation than male peers.
Employees spoke out against harassment and discrimination, signing petitions and staging a walkout to criticize the company’s defensive response to the case.
Women who worked for the company as hires or independent contractors between Oct. 12, 2015, and Dec. 31, 2020, may be eligible for compensation under the settlement terms.
According to the state agency, $45.75 million of the settlement amount has been put aside for such payments.
Activision Blizzard has promised to implement “fair pay and promotion practices” within the corporation.
“We recognize the significance of the issues addressed in this agreement and are committed to fully implementing all of the new obligations we have assumed as a result of it,” Activision Blizzard said in a statement Saturday.
The corporation also stated that the California Civil Rights Department agreed to file an updated complaint that removes the charges of sexual harassment.
According to the settlement agreement, “no court or any independent investigation has substantiated any allegations” of systemic or widespread sexual harassment at Activision Blizzard, as well as claims that the company’s board of directors and CEO acted improperly or ignored or tolerated a culture of harassment, retaliation, or discrimination.
Activision settled sexual harassment and discrimination charges brought by the United States Equal Employment Opportunity Commission in September 2021, agreeing to establish a $18 million fund to compensate those who were harassed or discriminated against.
Earlier this year, the business agreed to pay $35 million to settle Securities and Exchange Commission claims that it failed to maintain procedures to collect and evaluate workplace concerns regarding disclosure obligations and violated a federal whistleblower protection law.
Activision Blizzard To Pay $54 Million To Settle California State Workplace Discrimination Claims
Activision paid the settlement without admitting or denying the SEC’s conclusions and consented to a cease-and-desist order.
Activision is a prominent video game company known for developing popular franchises such as Call of Duty, World of Warcraft, and Overwatch.
The company was founded in 1979 and has since become a major player in the gaming industry, releasing successful titles across various platforms.
With a focus on creating engaging and immersive gaming experiences, Activision continues to be a leading force in the world of interactive entertainment.
SOURCE – (AP)
