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Edited at 7:45pm PT — The original version of this article incorrectly stated the settlement was related to sexual harassment, not unequal employment practices on the basis of sex. We have updated the article to contemplate this information and we regret the error.
Activision Blizzard has reportedly entered into an agreement with the California Civil Rights Department to settle its 2021 case alleging sex discrimination in its employment practices.
Through this agreement, the California CRD is withdrawing these allegations and dismissing its systemic harassment-related claims according to reports from the Wall Street Journal and documentation viewed by VentureBeat.
The settlement agreement between the parties stipulates that “no court or any independent investigation has substantiated any allegations” about “systemic or widespread sexual harassment at Activision Blizzard” nor “that Activision Blizzard senior executives ignored, condoned or tolerated a culture of systemic, harassment, retaliation or discrimination.” Additionally, the settlement also said that its investigation found no evidence of wrongdoing by Robert Kotick, CEO of Activision Blizzard, or its board.
The state’s expert witnesses testified that a gender pay gap existed overall, but a pay disparity was not found among employees of the same rank. This data aligns with the company’s Pay Equity Review for 2020 and its 2023 Transparency Report. The settlement agreement is expected to be filed in court early next week.
Per the agreement, Activision Blizzard’s maximum settlement will total nearly $56 million. The publisher will aside as much as $46.75 million to pay women employees who said they had received inequitable pay from 2015-2020. An additional $9.125 million was awarded to cover attorney’s fees.
Activision Blizzard has maintained its innocence both in regards to unequal pay and allegations of sexual harassment. The company reportedly fired 37 employees in the months that followed these allegations. Additionally, the company settled its Federal EEOC complaint in March 2022 for $18 million.
Earlier this year, Microsoft passed key regulatory hurdles in the U.S. and U.K. acquired the ABK in October. This deal was partially a result of the allegations of sexual harassment and discrimination because the publisher’s stock price fell in response.
Riot Games faced a similar lawsuit from the California Civil Rights Department. The case settled for $100 million earlier this year. Of the sum, 80% went to over 1,500 women who worked with the company between 2014 and 2021.
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