Activision Blizzard has agreed to a settlement of 54 million US dollars to settle a lawsuit regarding discrimination against female employees.
What is this lawsuit about? In 2021, the U.S. agency “California Civil Rights Department” (abbreviated: CRD) filed a lawsuit against Activision Blizzard.
The background of the lawsuit involves various allegations that Activision Blizzard discriminated against and treated female employees inequitably. Women were reportedly paid less for the same jobs, top positions in the company predominantly went to white men, and women were sexually harassed.
The lawsuit consists of 29 pages and was filed on July 20, 2021, in the “Superior Court of the State of California, in and for the County of Los Angeles” (via aboutlaw).
The agency advocates for the enforcement of civil rights and is tasked with protecting California residents from workplace discrimination, among other duties.
Activision Blizzard agrees to settlement
Why is the company paying 54 million dollars now? As stated by the Civil Rights Department in a press release on December 15, the agency has reached a settlement agreement with Activision Blizzard (via calcivilrights.ca.gov).
In the agency’s statement, it says:
The California Civil Rights Department (CRD) announced today the conclusion of a settlement agreement of approximately 54 million US dollars to address allegations that Activision Blizzard, Inc., Blizzard Entertainment, Inc. and Activision Publishing, Inc. (Activision Blizzard) discriminated against women in the company, including by denying promotion opportunities and paying less than men for essentially equal work.
The CRD in the press release from December 15, 2023 via calcivilrights.ca.gov
According to CRD, Activision Blizzard will pay approximately 54,875,000 US dollars to cover direct compensation payments to female employees and the costs of the litigation. Of the total amount, about 45,750,000 US dollars will flow into a settlement fund intended for compensating female employees.
Therefore, women who worked as employees or contract workers for Activision Blizzard in California between October 12, 2015, and December 31, 2020, may be entitled to compensation.
Does the settlement have other implications? Yes, if the court should approve the settlement, Activision Blizzard will also be required, according to CRD, to hire an independent auditor to evaluate Activision Blizzard’s “compensation and promotion policies as well as training materials and make recommendations.”
Additionally, Activision Blizzard will also need to continue to strive to include qualified candidates from underrepresented communities in recruitment, hiring, and retention efforts.
Kotick denied that Activision Blizzard has a sexism problem
Only at the end of March 2023, Activision CEO Bobby Kotick denied that Activision Blizzard has a sexism problem. They had conducted investigations and never had any systemic issues with harassment, Kotick stated in an interview with Variety.
However, in February 2023, Activision Blizzard had to pay a 35 million US dollar fine after an investigation by the “U.S. Security and Exchange Commission” (abbreviated SEC) revealed that Activision Blizzard had violated several laws and regulations.
Read more about the fine on MeinMMO: After sexism scandal: Activision Blizzard pays 35 million dollar fine
