Activision Blizzard has settled, agreeing to pay approximately $50 million to resolve a 2021 lawsuit filed by California’s Civil Rights Department (CRD). The lawsuit accused the video game giant of discriminatory practices against its female employees, including allegations of denying promotion opportunities and underpayment.
Background of the Lawsuit
After a two-year investigation, the CRD initiated legal action, unveiling a series of accusations against Activision Blizzard. The claims ranged from routine underpayment and failure to promote female employees to allegations of condoning sexual harassment within the company.
Resolution of Allegations
According to the settlement agreement, seen by Reuters, the CRD will withdraw its allegations related to systemic sexual harassment. However, other accusations, such as the denial of promotion opportunities and paying women less than their male counterparts for similar work, will be resolved through the settlement.
Want to know if you’re earning what you deserve? Find out with LawCrossing’s salary surveys.
Steps Towards Fair Practices
Activision Blizzard has committed to taking additional measures to ensure fair pay and promotion practices within the company as part of the settlement. The agreement also includes providing monetary relief to women who were either employees or contract workers in California between October 12, 2015, and December 31, 2020. The finalization of the settlement is contingent upon court approval.
Company’s Response
In response to the settlement, Activision Blizzard released a statement asserting that the CRD explicitly acknowledged that no court or independent investigation substantiated allegations of systemic or widespread sexual harassment at the company. The report also highlighted that no study found improper actions by the company’s board or chief executive in handling workplace misconduct.
Previous Settlements
This is not the first time Activision Blizzard has faced legal consequences over workplace discrimination. In 2021, the company agreed to pay up to $18 million to settle similar claims made by the Equal Employment Opportunity Commission. Despite these legal challenges, Microsoft finalized its acquisition of Activision Blizzard in October 2021 for nearly $69 billion.
Don’t be a silent ninja! Let us know your thoughts in the comment section below.