Microsoft owned Activision Blizzard has agreed to settle a case from a California state agency that accused the video game publisher of discriminating against women. The settlement, amounting to nearly $55 million, aims to provide relief to female employees and contractors from October 2015 to December 2020, covering legal fees as well. Approximately $46 million of the total will be directed to a fund for affected women.
This development follows a case settled two years ago with the U.S. Equal Employment Opportunity Commission, in which Activision Blizzard agreed to establish an $18 million fund to compensate victims, addressing issues like sexual harassment, pregnancy discrimination, and retaliation.
In 2021, the California Department of Fair Employment and Housing filed a lawsuit against the company, alleging sexual harassment, discrimination, and retaliation. Subsequently, reports emerged that Activision Blizzard CEO Bobby Kotick was aware of misconduct allegations but did not disclose all relevant information to the board, leading to a drop in shares. Microsoft then initiated talks to acquire Activision Blizzard, culminating in a $69 billion deal that closed in October 2022. Microsoft owned Activision
The Federal Trade Commission recently contested a federal judge’s decision to reject its attempt to stop the Microsoft-Activision Blizzard deal, arguing mistakes were made. The settlement now requires approval from the Los Angeles County Superior Court. Activision is obligated to maintain efforts to include underrepresented individuals in recruiting and inform job applicants about their negotiation rights unless compensation is non-negotiable.
Activision Blizzard expressed its commitment to implementing the new obligations outlined in the agreement, emphasizing the importance of the addressed issues.