Activision Blizzard, the gaming giant, is set to pay $50 million to settle a workplace discrimination lawsuit in California. The lawsuit, filed in 2021 by the state’s Civil Rights Department (CRD), accused the company of discriminating against women employees, including denying promotions and underpaying them.
Following a two-year investigation, the CRD alleged that Activision routinely underpaid and failed to promote female employees while tolerating sexual harassment. As part of the settlement, the CRD will withdraw systemic sexual harassment allegations, focusing on Activision’s discriminatory practices towards women, such as denying promotion opportunities and paying them less than male counterparts for similar work.
Activision has committed to implementing measures to ensure fair pay and promotion practices. The settlement also includes providing monetary relief to women who worked for Activision in California between October 12, 2015, and December 31, 2020, pending court approval.
The CRD’s statement acknowledged that no court or independent investigation substantiated claims of systemic sexual harassment at Activision Blizzard. The company asserted that it found neither impropriety nor mishandling of workplace misconduct by its board or CEO.
This settlement follows Activision’s agreement in 2021 to pay up to $18 million to resolve similar claims brought by the Equal Employment Opportunity Commission. Even after Microsoft acquired Activision for nearly $69 billion in October, Activision still faces legal challenges related to workplace discrimination.
In light of these developments, it’s crucial for investors to monitor how such legal matters impact Activision’s standing in the gaming industry and its ongoing operations under Microsoft’s ownership.
Conclusion
In conclusion, Activision Blizzard’s $50 million settlement in the workplace discrimination lawsuit underscores the importance of addressing gender-based issues in corporate environments. The company’s commitment to rectifying discriminatory practices and providing relief to affected employees reflects a step toward fostering fair and inclusive workplaces. As Activision navigates these legal challenges, its integration into Microsoft’s portfolio adds an extra layer of scrutiny, emphasizing the need for transparent and equitable corporate practices in the gaming industry.
