California Files Sexual Harassment Suit in $54 Million Settlement With Activision

The California Civil Rights Department said that no “investigation has substantiated any allegations” against the video game maker. The company has agreed to set aside funds to address accusations of pay disparity and discrimination.

More than two years after a California state agency accused the video game maker Activision Blizzard of fostering a work culture of sexual harassment and discrimination against female employees, the agency on Friday withdrew its allegations in a settlement with the company.

As part of the settlement, Activision agreed to set aside as much as $47 million to address accusations of pay disparity and discrimination in promotions for female employees. In total, the company agreed to pay about $54 million in the settlement.

The settlement also said an investigation had not found evidence of wrongdoing by Activision’s board, its executives or its chief executive, Robert Kotick.The case — and the pall it created over the company when it was filed in 2021 — was a factor that led Microsoft to seek to buy Activision because its stock had fallen. Microsoft completed the blockbuster $69 billion deal for Activision this year.

The original complaint from the California Civil Rights Department, which was then called the California Department of Fair Employment and Housing, contended that the state had conducted an investigation into Activision and found that it “fostered a pervasive ‘frat boy’ workplace” and that female employees were “subjected to constant sexual harassment.”

At the time, Activision said the complaint included “distorted and, in many cases, false, descriptions” and was “irresponsible behavior from unaccountable state bureaucrats.”

The settlement agreement is subject to court approval and is expected to be filed in court early next week. Read more about this story here.

Credit: NYtimes