In a recent development, Microsoft-owned video game publisher Activision Blizzard has reached a settlement agreement with a California state agency over allegations of gender discrimination. The California Civil Rights Department accused the company of denying promotions and paying women less than their male counterparts. As part of the settlement, Activision Blizzard will pay approximately $55 million to provide relief to affected female employees and cover legal fees.
The proposed settlement agreement states that from October 2015 to December 2020, Activision Blizzard will allocate around $46 million to a fund for the benefit of affected women. The remaining amount will go towards covering legal expenses. The settlement aims to address the grievances of female employees and contractors who experienced discrimination during the stated period.
This is not the first time Activision Blizzard has faced accusations of workplace discrimination and harassment. In 2019, the company settled a case brought forward by the U.S. Equal Employment Opportunity Commission, which highlighted instances of sexual harassment, pregnancy discrimination, and retaliation. Activision Blizzard agreed to establish an $18 million fund to compensate the victims.
A damning report by the Wall Street Journal revealed that Activision Blizzard CEO Bobby Kotick was aware of the misconduct allegations within the company but failed to disclose all relevant information to the board. This revelation further tarnished the company’s reputation and led to a decline in its share price. As a consequence, Microsoft initiated discussions to acquire Activision Blizzard, resulting in a $69 billion deal that closed in October 2021.
Regulatory bodies in the U.S. and Europe scrutinized the Microsoft-Activision Blizzard deal before its completion. The Federal Trade Commission argued in a San Francisco appellate court that a federal judge had made errors in dismissing their attempt to halt the transaction. The approval of Activision Blizzard’s settlement with the state agency now rests with the Los Angeles County Superior Court.
As part of the proposed settlement agreement, Activision Blizzard would be required to continue efforts to promote diversity and inclusion within its workforce. The company must prioritize the recruitment of underrepresented individuals. Additionally, unless that compensation is non-negotiable, Activision Blizzard must inform job applicants in writing at the beginning of the hiring and promotion processes that they have the opportunity to negotiate their pay.
Activision Blizzard responded to the settlement by acknowledging the importance of the addressed issues and expressing their commitment to implementing the new obligations outlined in the agreement. The company’s statement to CNBC conveyed its dedication to rectifying the past discriminatory practices and forging a more inclusive work environment.
With a settlement of $55 million, Activision Blizzard aims to compensate the female employees and contractors who experienced discrimination. This case reflects the ongoing struggle for gender equality in the tech and gaming industry. Activision Blizzard’s settlement serves as a reminder of the importance of fair treatment and inclusivity in the workplace. The company must now fulfill its obligations to promote diversity and eliminate discriminatory practices to restore its reputation.
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