CBR supports the hard work of developers and industry professionals to create the video games fans all know and love, but it's important to remember the ongoing allegations that Activision Blizzard is facing when making decisions about the games you play. You can find CBR's continuing coverage of the Activision Blizzard allegations here.
The United States Securities and Exchange Commission announced it reached a $35 million settlement with notorious video game developer Activision Blizzard.
According to The Hollywood Reporter, the SEC revealed Activision Blizzard will pay $35 million due to charges that claimed the company failed to properly address complaints regarding its alleged toxic workplace culture and reported violations of whistleblower protection rules. The SEC claimed that Activision Blizzard lacked proper procedures to address the complaints of its workers from 2018 until 2021, which negatively impacted its comprehension of the severity of the issue. The SEC's order additionally alleged the video game developer violated an SEC whistleblower protection between 2016 and 2021, wherein the terms of its separation agreement required former employees to inform the company if they were contacted by the SEC. The federal agency claimed the settlement included a cease and desist order to both practices.
Regarding the charges, the director of the SEC's Denver regional office Jason Burt said, "The SEC's order finds that Activision Blizzard failed to implement necessary controls to collect and review employee complaints about workplace misconduct, which left it without the means to determine whether larger issues existed that needed to be disclosed to investors Moreover, taking action to impede former employees from communicating directly with the Commission staff about a possible securities law violation is not only bad corporate governance, it is illegal."
Activision Blizzard additionally released its own statement, claiming it was abiding by the agreement. "We are pleased to have amicably resolved this matter," the company said. "As the order recognizes, we have enhanced our disclosure processes with regard to workplace reporting and updated our separation contract language. We did so as part of our continuing commitment to operational excellence and transparency. Activision Blizzard is confident in its workplace disclosures."
Activision Blizzard's Legal Troubles
While Activision Blizzard has resolved the SEC's charges, its legal troubles are far from over. The company is still faced with the ongoing sexual harassment lawsuit filed by the California Civil Rights Department, formerly known as the Department of Fair Employment and Housing.
The CRD alleged that the video game developer fostered a "frat boy" workplace culture, wherein female employees were subjected to constant discrimination based on their sex. The suit cited disparities between male and female workers on several matters, which included unequal pay, disproportionate promotion processes and unfair termination.
Source: The Hollywood Reporter