SEC Investigates Activision Blizzard Workplace Practices and Disclosures

Federal securities regulators have launched a major investigation into Activision Blizzard Inc., including how the video game publishing giant has handled allegations of sexual misconduct and discrimination in the workplace. employees, according to people familiar with the survey and documents viewed by the Wall Street Journal.

The Securities and Exchange Commission has sued Activision, known for its Call of Duty, World of Warcraft and Candy Crush franchises, and several of its senior executives, including longtime chief executive Bobby Kotick, according to the people and documents.

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The agency is asking for documents, including the minutes of Activision’s board meetings since 2019, the personal files of six former employees and the separation agreements the company has entered into this year with members of the board. staff, according to records. The SEC is requesting communications from Mr. Kotick with other senior executives regarding complaints of sexual harassment or discrimination by Activision employees or contractors, according to the documents.

Activision spokeswoman Helaine Klasky confirmed on Monday that the SEC investigation concerned “company disclosures regarding employment issues and related issues,” adding that the agency had subpoenaed several employees current and former.

“The company is cooperating with the SEC,” the spokesperson said.

An SEC spokeswoman declined to comment.

The SEC investigation dramatically increases regulatory pressure on Activision, America’s largest video game publisher by market capitalization. The SEC is asking for information to determine whether Activision and its executives properly disclosed the allegations of workplace harassment and gender pay issues, and whether this information should have been shared sooner with investors and other parties, according to documents and people familiar with the investigation.

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California Department of Fair Employment and Housing sued Activision at the end of July alleging that the company paid women less than their male counterparts and offered them fewer opportunities for advancement. The agency also alleged that Activision ignored complaints from female employees about sexual harassment, discrimination and retaliation and maintained a “frat-boy” culture, primarily in its Blizzard Entertainment unit.

Activision said it would fight the California agency’s charges. He initially criticized the trial, saying it included distorted, and in many cases false, descriptions of his past. Employees responded by planning walkouts, and Mr Kotick said Activision’s initial response was “deaf” and that the company had hired a law firm to investigate the complaints.

Separately, the Communications Workers of America filed charges earlier this month with the National Labor Relations Board against Activision, alleging intimidation of workers. The charges include allegations that company management used coercive tactics to prevent its employees from exercising their organizational rights under federal law.

In a statement on Monday, Ms. Klasky of Activision said the company had “gone to great lengths to respect the rights of all employees under the NLRB.”

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On the same day the union filed charges, Activision said it hired two senior executives to help it create a more inclusive workplace and increase its income. Julie Hodges, a Walt disney Co., was appointed Director of Human Resources and Sandeep Dube, a Delta Airlines Inc., has been appointed Commercial Director. Ms. Hodges, who oversaw compensation, benefits and talent acquisition at Disney, occupies the role of chief human resources officer left vacant by Claudine Naughton.

Ms Klasky said in a statement in response to questions about the SEC investigation that Activision is deeply committed to making the company one of the best and most inclusive places to work.

“We have made and are making a number of important changes to improve our policies and procedures to ensure that there is no place in our business for discrimination, harassment or unequal treatment. of any kind, “the statement said.

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