Topline
Activision Blizzard agreed to pay $35 million to resolve claims it failed to disclose reports of workplace misconduct to investors, the Securities and Exchange Commission announced Friday, following allegations of sexual assault and mistreatment of women at the company in recent years
Key Facts
The SEC said Activision Blizzard’s payment will settle charges that claim the video game giant failed to disclose or assess reports of workplace misconduct and for violation of a whistleblower protection rule—claims Activision Blizzard neither confirmed nor denied.
The federal agency alleges Activision Blizzard faced difficulties in attracting, retaining and motivating employees amid reports of sexual harassment between 2018 and 2021, and then failed to communicate its challenges with investors.
Activision Blizzard agreed to pay the Equal Employment and Opportunity Commission $18 million in 2022 to compensate former employees who faced sexual harassment and discrimination.
A separate lawsuit filed by California Civil Rights Department in 2021 alleges the video game company had routinely ignored employee complaints of sexual harassment, discrimination and retaliation, adding it has developed a “frat boy” workplace culture.
Activision Blizzard later denied these allegations in a securities filing, adding there was “no evidence to suggest” that senior executives ignored or downplayed sexual harassment complaints
Big Number$2.07 billion. That’s how much Activision Blizzard earned in third-quarter revenue in 2022, according to the company, a 16% increase over the previous year.