Less than three months after being acquired by Microsoft Inc., Activision Blizzard Inc. is settling a prominent lawsuit with the California Civil Rights Department.
The agency’s suit was filed in 2021 and alleged that Santa Monica-based Activision had denied promotion opportunities to female employees and paid them less than men for the same work, thereby violating the state’s Equal Pay Act and Fair Employment Housing Act. The CRD officially withdrew its suit on Dec. 20 in order to “avoid the time, expense and uncertainty of future litigation,” and stated that no court or independent investigation found any evidence to substantiate the claims of harassment and discrimination. As part the settlement, Activision will pay $54.8 million to cover litigation costs and other fees.
The CRD also announced that it found no evidence that Activision’s board or its then-chief executive, Bobby Kotick, improperly handled reports of misconduct or harassment. Kotick, who has led Activision since 2008, officially departed the company on Dec. 29.
Approximately $45.8 million of the settlement payment will go to a fund to compensate female employees who worked at the company between Oct. 21, 2015, and Dec. 31, 2020. A source familiar with the matter said that female employees will be eligible for compensation regardless of whether they filed a claim of workplace misconduct or discrimination.
The CRD noted that Activision has maintained “positive measures” to monitor and improve company practices and publicly published its first annual transparency report in May last year. Activision will be required to distribute excess settlement funds to charitable organizations that focus on advancing women in the gaming and technology industries or on promoting awareness of gender equality issues in the workplace. It will also retain an independent consultant to evaluate the company’s compensation and promotion policies, which will paid for by Activision.
“We are gratified…
Read the full article here
