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The U.S. Equal Employment Opportunity Commission (EEOC) and Activision Blizzard have settled a lawsuit over the gaming company’s allegedly pervasive sexual harassment and discrimination. The news follows an EEOC lawsuit filed in a California court on Monday, based on a three-year investigation that included the game publisher’s cooperation. As part of the settlement, Activision Blizzard will create an $ 18 million fund to compensate employees who claim damages.
The Wall Street Journal last week reported that Activision Blizzard was in settlement talks with the EEOC, and the company said in a statement that it was “actively engaged in ongoing discussions with the EEOC.” In its complaint, the EEOC says it informed the company of its findings on June 15 after launching an investigation in September 2018 and then engaging in “extensive conciliation discussions” with Activision Blizzard. In addition to establishing the compensation fund, the company undertakes to cease any discriminatory practices (a position to which Activision Blizzard has committed in previous statements), to retain the services of a consultant to ensure compliance. , improve its training and performance appraisal processes to prevent future breaches, and submit to future EEOC audits.
“We will continue to be vigilant in our commitment to eliminate harassment and discrimination in the workplace. We thank the EEOC for its constructive engagement as we strive to deliver on our commitments to end inappropriate behavior in the workplace, ”said Bobby Kotick, CEO of Activision Blizzard, in a statement on the agreement. All unclaimed funds will go to nonprofit organizations that focus on “advancing women in the video game and technology industries” or promoting gender quality awareness, or towards increasing gender awareness. future investments in diversity and inclusion.
The EEOC complaint was one of many legal battles for Activision Blizzard, which had previously been pursued by the California Department of Fair Employment and Housing, the company’s investors, and the Campaign to Organize Digital Employees. The Newspaper also reported that the Securities and Exchange Commission is investigating the company.
The lawsuits – along with the stories of Activision Blizzard employees – paint a picture of a company with an atmosphere of “brotherhood” where employees have been verbally and physically harassed without consequence. Several executives, including Blizzard chairman J. Allen Brack, have left the company following the disclosures, and the company has updated elements of its games. Monitoring and World of warcraft remove references to employees accused of harassment or other offensive behavior.
Update 7:45 p.m. ET: Updated with settlement news between Activision Blizzard and EEOC.
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