Activision Blizzard has agreed to pay around $54 million to settle discrimination claims filed by California’s civil rights agency on behalf of female employees of the video game company.
The settlement, pending court approval, addresses allegations that the company behind games like Call of Duty, Overwatch, and World of Warcraft “discriminated against women at the company, including denying them promotion opportunities and paying them less than men for similar work,” the California Civil Rights Department announced on Friday.
Allegations of workplace discrimination contributed to a decline in Activision’s stock price in 2021, ultimately leading to Microsoft’s acquisition bid in January 2022. After overcoming opposition from antitrust regulators and rivals, Microsoft, the owner of the Xbox gaming system, completed its $69 billion acquisition of Activision in October.
In July 2021, California’s civil rights agency sued Santa Monica-based Activision Blizzard, alleging that female employees experienced ongoing sexual harassment, faced limited leadership opportunities, and were paid less than their male counterparts when named to leadership positions.
Employees spoke out against harassment and discrimination, signing petitions criticizing the company’s response to the lawsuit and staging a walkout.
Under the terms of the settlement, women who worked for the company between Oct. 12, 2015, and Dec. 31, 2020, as hires or independent contractors, may be eligible for compensation. Approximately $45.75 million of the settlement amount has been allocated for these payments, according to the state agency.
Activision Blizzard has also committed to ensuring “fair pay and promotion practices” at the company.
“We recognize the importance of the issues addressed in this agreement and are committed to fully implementing all the new obligations we have assumed as part of it,” Activision Blizzard said in a statement on Saturday.
The company also mentioned that the California Civil Rights Department has agreed to file an amended complaint that withdraws the sexual harassment allegations.
The settlement agreement specifies that “no court or independent investigation has substantiated any allegations” of systemic or widespread sexual harassment at Activision Blizzard, nor claims that the company’s board of directors and CEO acted improperly or ignored or tolerated a culture of harassment, retaliation, or discrimination.
In September 2021, Activision settled sexual harassment and discrimination claims filed by the U.S. Equal Employment Opportunity Commission, agreeing to establish an $18 million fund to compensate those who were harassed or discriminated against.
Earlier this year, the company agreed to pay $35 million to settle Securities and Exchange Commission charges that it failed to maintain controls for collecting and evaluating workplace complaints in relation to disclosure requirements and violated a federal whistleblower protection rule. In paying the settlement, Activision neither admitted nor denied the SEC’s findings and agreed to a cease-and-desist order.
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