Activision Blizzard Confirms SEC Investigation into Allegations of Sexual Misconduct | Activision Blizzard

The California-based company said Tuesday it was complying with a recent Securities and Exchange Commission subpoena sent to current and former employees and officers and the company itself on “employment and related matters.”

The Wall Street Journal reported on Monday that the SEC was investigating how the company handled complaints of sexual misconduct and discrimination in the workplace and subpoenaed senior executives, including CEO Bobby Kotick, a well-known tech billionaire. An SEC spokesperson declined to comment.

Activision Blizzard – the maker of popular video games including Candy Crush, Call of Duty, Overwatch and World of Warcraft – also said on Tuesday it had cooperated with an Equal Employment Opportunity Commission investigation into employment practices and that he worked with several regulators. on the handling and resolution of workplace complaints he has received ”and that he was committed to making the company“ one of the best and most inclusive places to work ”. He hired a new Disney “chief of staff”.

The company’s shares have fallen 20% in two months as legal problems mount over an alleged culture of discrimination against women and minorities.

In late July, the California Civil Rights Agency sued the company, alleging gender discrimination and sexual harassment. The lawsuit accused the multibillion-dollar company of violating state civil rights and equal pay laws, and paints a worrying situation image of employee lives, including allegations of widespread sexual harassment, gender discrimination, retaliation and a “frat boy” culture in the workplace.

The lawsuit sparked a tally within the video game industry and saw hundreds of Activision Blizzard employees stage a walkout over the summer.

Kotick said in response to the lawsuit that the company is “taking swift action” to “ensure a safe environment” for staff. “There is nowhere in our business for discrimination, harassment or unequal treatment of any kind.”

Meanwhile, a shareholder lawsuit in August said the company had not disclosed to investors that it was under investigation in California and that it had workplace culture issues. that could cause legal problems. The shareholder lawsuit noted discontent within the company, saying more than 2,000 current and former Activision employees have signed a petition criticizing the company’s response to the California lawsuit as “insulting” and saying that they did not trust leadership to “put employee safety above their own interests”. .