California's civil rights agency sued video game developer Activision Blizzard for allegedly discriminating against female employees, and the company has now agreed to pay almost $54 million to end the case.
According to the California Civil Rights Department's press release, the producer of popular video games "discriminated against women at the company, including denying promotion opportunities and paying them less than men for doing substantially similar work." Reportedly, the settlement is still pending court approval.
The stock price of Activision Blizzard was dragged down in 2021 by workplace discrimination allegations, which set the stage for Microsoft's eventual acquisition effort in January 2022. After facing widespread resistance from antitrust authorities and competitors, the software giant--who controls the Xbox gaming system--finalized its $69 billion deal to acquire Activision Blizzard in October of this year.
Employees of the video game company, Activision Blizzard, hold a walkout and protest rally to denounce the companys response to a California Department of Fair Employment and Housing lawsuit and to call for changes in conditions for women and other marginalized groups, in , in Irvine, California, on July 28, 2021.
Alleged Female Worker Discrimination
In July 2021, the civil rights agency of California filed a lawsuit against Santa Monica-based Activision Blizzard, claiming that female employees were subjected to persistent sexual harassment, that there were insufficient female leadership positions, and that female employees who were promoted received lower base pay, bonus pay, and overall compensation compared to their male colleagues.
In response to discrimination and harassment, workers staged a walkout and signed petitions denouncing the firm's defensive response to the case.
As reported by The Associated Press, this settlement may provide financial benefits to women who were employees or independent contractors of the corporation between October 12, 2015, and December 31, 2020. A portion of the settlement, around $45.75 million, has been designated for these types of payments, according to the state agency.
The video game developer has also committed to instituting "fair pay and promotion practices" inside the establishment.
In a statement released on Saturday, December 16, Activision Blizzard expressed its commitment to fulfilling all of the new responsibilities set out in the agreement completely. They emphasized the significance of the concerns addressed in the agreement and vowed to do so. In addition, the business made notice of the fact that the California Civil Rights Department had consented to remove complaints of sexual harassment in an updated complaint.
The settlement agreement states unequivocally that "no court or any independent investigation has substantiated any allegations" of pervasive or systemic sexual harassment at Activision Blizzard. It also rejects assertions that the CEO and board of directors erred or failed to address or condone hostile work environments.
Also Read: Adobe's Hard-to-Cancel Subscriptions Under Investigation by FTC
Previous Accusations Against Firm
In another instance, the United States Equal Employment Opportunity Commission (EEOC) filed sexual harassment and discrimination accusations against Activision Blizzard in September 2021. As part of the settlement, the video game maker agreed to establish a $18 million fund to compensate victims of such incidents.
Early this year, the corporation settled Securities and Exchange Commission (SEC) claims that it failed to maintain procedures to collect and analyze workplace concerns for disclosure requirements and violated a federal whistleblower protection law for $35 million. Activision Blizzard consented to a cease-and-desist order as part of the settlement and did not affirm or refute the SEC's allegations.
Also Read: Toymaker Hasbro Announces New Mass Layoff Affected 20% of Workforce
