Activision Blizzard to Pay $54 Million To Resolve A Lawsuit Alleging Gender Discrimination

Author

Prithhis Bose

Date

Dec, 16.2023

Activision Blizzard and the California Civil Rights Department (CRD) have reached a $54 million settlement in their lawsuit alleging gender discrimination. Activision Blizzard has been the target of allegations of sexual harassment for the past few years. The lawsuit claimed that the gaming company had a culture of such behaviour.

The Department of Fair Employment and Housing (CRD) of California had filed a complaint against Activision in 2021. It alleged that the company promoted a "frat boy" culture. The lawsuit against Activision Blizzard claimed that discrimination against women based on their gender and sexual orientation had occurred. Resignations of prominent employees, including the then-Blizzard President and SVP of HR, occurred shortly after the filing. Prior to the lawsuit, reports stated that Bobby Kotick, the CEO of the company, was aware of the allegations for a few years.

A press release from the CRD mentioned that a settlement of about $54 million has been reached in the lawsuit against Activision Blizzard. Of the entire amount, $45,750,000 will go towards a settlement fund specifically designated for worker compensation but this needs approval of the court. This implies that women who worked as contractors or employees for Activision Blizzard between 12th october  2015 and 31st December 2020 may be entitled to compensation.

The CRD further mentioned that "no court or any independent investigation has substantiated any allegations" of systemic or widespread sexual harassment at the company. Additionally, the CRD will only include claims of gender discrimination in its amended complaint, dropping the accusations of sexual misconduct.

Naturally, the California lawsuit was just one of the few that surfaced in the media in the last few years. Activision Blizzard faced additional charges after CRD's filing. Activision Blizzard and the US Equal Employment Opportunity Commission reached a $18 million settlement in 2022 after the judge dismissed a separate lawsuit accusing the company of sexual misconduct and discrimination.