Activision Blizzard, a gaming icon, has finally reached the end of the legal issues that have recently come upon them. The California Civil Rights Department has ruled out a settlement for the gender discrimination lawsuit against the company. This lawsuit, which drew widespread attention, accused Activision Blizzard of maintaining a workplace culture ripe with s*xual harassment.
Update: MS/ABK
Activision Blizzard to Pay Around $50 Million to Settle Lawsuit That Spurred Microsoft’s Takeover
California’s Civil Rights Department sued Call of Duty maker in 2021 alleging sexual harassment, discrimination, and pay disparity
Activision Blizzard has agreed to…
— Post Up (@PostUp_SOG) December 16, 2023
The case, initiated by California’s CRD back in 2021, painted a troubling picture of Activision Blizzard’s internal environment. There have been allegations of a frat boy culture in the company which leads to s*xual harassment and discrimination gender-wise. The lawsuit immediately led to a whole lot of walkouts and resignations.
Interestingly, the settlement arrives amid significant corporate changes. Microsoft recently completed a $69 billion acquisition of Activision Blizzard. The announcement of this acquisition, which followed closely on the heels of the lawsuit filing, signals potential shifts in company culture and management practices. It’s a pivotal moment for Activision Blizzard.
How has the Activision Blizzard gender-discrimination case been settled?
The lawsuit’s resolution involves a substantial financial commitment from Activision Blizzard. According to the CRD, the company has agreed to settle the lawsuit for approximately $54 million. This agreement, pending court approval, earmarks the majority of these funds, about $45,750,000, to a settlement fund.
This fund is dedicated to compensating workers who were employed or contracted by Activision Blizzard between October 12, 2015, and December 31, 2020, offering recompense to those affected by the alleged discriminatory practices.
Furthermore, the settlement terms include noteworthy amendments. The CRD will modify its complaint to exclude the s*xual misconduct allegations, focusing solely on gender discrimination claims. This change follows the CRD’s statement that neither courts nor independent investigations have substantiated the widespread s*xual harassment allegations.
The conclusion of this case does not mark the end of Activision Blizzard’s legal challenges. In the year 2022, there was a similar settlement for $18 Million with the US Equal Employment Opportunity Commission over similar s*xual misconduct allegations. These legal proceedings highlight the ongoing struggle within the gaming industry to create a safe and equitable work environment.
The settlement with the CRD is a crucial step in Activision Blizzard’s journey toward rectifying its workplace issues. As the company moves forward under Microsoft’s ownership, the gaming community and industry observers will keenly watch how it navigates these challenges. The resolution of this high-profile case might set a precedent for how major corporations address and resolve issues of workplace discrimination and harassment.