The California Civil Rights Division and Activision Blizzard have reached an agreement in response to the latter’s allegations that the company had become a “breeding ground for harassment and discrimination against women.” A settlement fund of approximately $46 million will be established to compensate workers affected by toxicity and discrimination within the company, primarily women who worked for or were contracted by Activision Blizzard in California between October 12, 2015, and December 31, 2015.
Back in 2015, Activision Blizzard was facing multiple allegations of sexual harassment and workplace misconduct. Included allegations of male employees drinking excessively and making rape jokes, as well as a story about the “Cosby Suite,” where one executive known for his unwanted sexual advances harassed women, and another about a female employee who committed suicide after colleagues shared a nude picture of her.
The DFEH first detailed the claims in a complaint filed in July, and in September, California’s Equal Employment Opportunity Commission responded by filing its own lawsuit. The case quickly devolved into a turf war between federal and state agencies, resulting in Activision’s preferred outcome: a settlement that removes some uncertainty about its liability stemming from widespread allegations of sexual harassment during Microsoft’s $68.7 billion bid to buy the company.
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The Wall Street Journal broke the news of the settlement, citing sources who say the CRD initially sought a settlement of more than $100 million, aiming for a payout at the same level as similar lawsuits. In May 2023, 1,548 women were compensated from a class action lawsuit filed in 2018 alleging gender discrimination, sexual harassment, and a toxic work environment at Riot Games; currently the largest the state agency has reached.
This included receiving unwanted images of male genitalia from bosses and coworkers; an e-mail thread about how to “penetrate” a female co-worker, and an alleged list circulated among senior leaders detailing who they’d sleep with among the female developers. The settlement was approved, with court filings indicating payments ranging from $5,000 to more than $150,000 from the $100 million settlement for the League of Legends company.
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In a previous settlement with the EEOC, Activision Blizzard addressed allegations of its own sexual harassment and discrimination within the organization. The settlement included a $18 million fund for qualified plaintiffs. Additionally, the US SEC looked into workplace misconduct, which led to a $35 million settlement. The lawsuit is thought to be the first move in Microsoft’s takeover strategy, which would catapult the company to third position in the global video game publishing rankings, behind only Tencent Holdings and Sony Group.
Activision will also donate any excess settlement funds to charities focused on advancing women in the gaming and technology industries or raising awareness about gender equality at work, according to the agreement. The settlement is subject to court approval, and the terms and figures could change before implementation. In a statement to GamesIndustry.biz, an Activision Blizzard spokesperson said: “We are gratified that we have reached an agreement with the California Civil Rights Department today.“
What do you think about this lawsuit finally coming to an end? Leave a comment below!
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