-owned Activision Blizzard has agreed to settle a case from a California state agency that alleged the video game publisher discriminated against women, including denying them promotion opportunities and paying them less.
California’s Civil Rights Department announced on Friday that, as part of a proposed settlement agreement, Activision Blizzard will pay nearly $55 million to address concerns related to female employees and contractors from October 2015 to December 2020, including covering legal fees. Of the total amount, approximately $46 million will be allocated to a fund for affected women.
This development follows a settlement two years ago in response to a case from the U.S. Equal Employment Opportunity Commission, which highlighted issues such as sexual harassment, pregnancy discrimination, and retaliation. In that settlement, Activision Blizzard agreed to establish an $18 million fund for victims.
In 2021, the Department of Fair Employment and Housing filed a lawsuit against the company, alleging sexual harassment, discrimination, and retaliation. The Wall Street Journal later reported that Activision Blizzard CEO Bobby Kotick was aware of misconduct allegations within the company but did not disclose all relevant information to the board. This news led to a drop in shares, and Microsoft initiated talks to acquire Activision Blizzard, a deal that closed in October 2022. a California state
The proposed settlement with the state agency requires approval from the Los Angeles County Superior Court. As part of the agreement, Activision must continue efforts to promote the inclusion of underrepresented individuals in recruiting. Additionally, the company would be obligated to inform job applicants in writing, at the start of hiring and promotion processes, that they have the option to negotiate their pay, unless compensation is non-negotiable.
Activision issued a statement expressing its commitment to implementing the new obligations outlined in the agreement and acknowledging the importance of the addressed issues.