Activision Blizzard settles sex discrimination lawsuit for £44m
The company says it is "dedicated to fully implementing all the new obligations we have assumed as part of" the case.
Activision Blizzard has agreed to pay over £44 million to settle a 2021 sex discrimination lawsuit.
The Wall Street Journal reports that further to an agreement made with the California Civil Rights Department (CCRD) regarding unequal employment practices on the basis of sex, the megacorp has agreed to pay £44.1m ($56m) to settle claims of unequal pay and promotion practices between 2015-2020.
£36.85m ($46.75m) will be shared between claimants who claim that they were unfairly paid, and £7.1m ($9.1m) will cover associated legal fees.
By agreeing to the settlement, the CCRD's case against Blizzard Activision will be withdrawn, with the former agreeing publicly that "no court or any independent investigation has substantiated any allegations [of] systemic or widespread sexual harassment at Activision Blizzard".
Furthermore, the settlement dismisses the claim that "Activision Blizzard senior executives ignored, condoned or tolerated a culture of systemic, harassment, retaliation, or discrimination".
In the early hours of this morning, Activision Blizzard provided the following statement to VentureBeat:
"We are gratified that we have reached an agreement with the California Civil Rights Department (CRD) today, as the CRD has now announced in a press statement. We appreciate the importance of the issues addressed in this agreement and we are dedicated to fully implementing all the new obligations we have assumed as part of it. We want our employees to know that, as the agreement specifies, we are committed to ensuring fair compensation and promotion policies and practices for all our employees, and we will continue our efforts regarding inclusion of qualified candidates from underrepresented communities in outreach, recruitment, and retention.
"We are also gratified that the CRD has agreed to file an amended complaint that entirely withdraws its 2021 claims alleging widespread and systemic workplace harassment at Activision Blizzard," the statement continues. "As the CRD acknowledged explicitly in the agreement, 'CRD is filing along with a Proposed Consent Decree a Second Amended Complaint that withdraws, among other allegations and causes of action, the Fifth Cause of Action – 'Employment Discrimination – Because of Sex – Harassment'. As the CRD also expressly acknowledged in the agreement, 'no court or independent investigation has substantiated any allegations that there has been systemic or widespread sexual harassment at Activision Blizzard'. In addition, the CRD has acknowledged that no court or independent investigation substantiated any allegations that “Activision Blizzard’s Board of Directors, including its Chief Executive Officer, Robert Kotick, acted improperly with regard to the handling of any instances of workplace misconduct.”
The State of California sued Activision Blizzard back in June 2021, alleging that a "frat boy" culture created "a breeding ground for harassment and discrimination against women".
The lawsuit, filed by the State's Department of Fair Employment and Housing (DFEH) included a number of disturbing allegations and alleges a culture of "constant sexual harassment" mainly at Blizzard Entertainment.