More than two years have passed since the California Civil Rights Department (CRD) lawsuit. High-profile lawsuit against Activision Blizzardaccused the company of widespread gender discrimination and pay inequality, and the parties reached a settlement for approximately $54 million.
wall street journal The settlement was first reported on Friday and announced by the CRD. Statement on website Immediately after. The settlement requires court approval, and Activision Blizzard will “take additional steps to ensure fair pay and promotion practices within the company,” the CRD said.
It will also provide financial relief to women who were employed or contracted by Activision Blizzard from October 12, 2015 to December 31, 2020. If approved, about $45 million of that money would go directly to a settlement fund to compensate workers, the CRD said. . Any surplus funds from the settlement will be distributed to charities focused on empowering women in video games and technology, or promoting “awareness of gender equality issues in the workplace.”
CRD filed suit against Activision Blizzard in 2021 under its former name, the California Department of Fair Employment and Housing, after a two-year investigation. The lawsuit accuses Activision Blizzard of several violations of California’s Equal Pay Act and Fair Employment and Housing Act, including promoting a “frat boy” culture in which women are frequently discriminated against.
Activision Blizzard repeatedly denied the charges, but to no avail. Case dismissed in October 2022. But it seems to have gotten so much attention that it was one of the catalysts behind Microsoft. Recently completed acquisition of ActivisionBecause stock prices have fallen significantly.
Meanwhile, controversial CEO Bobby Kotick has confirmed he will remain at the top of the Call of Duty maker. Only until the end of 2023 After the acquisition. A new CEO has not yet been announced.
The Journal, citing sources familiar with the situation, reported that regulators initially sought a much higher sum than the agreed-upon settlement. Riot Games December 2021. As reported by WSJ, CRD estimated Activision Blizzard’s debt at nearly $1 billion in 2021.
CRD told IGN that the statement “mostly speaks to the historic nature of this $50 million-plus settlement agreement, which provides direct relief and compensation to women harmed by the company’s discriminatory practices.” ” he said.
Alex Steadman is IGN’s senior news editor and oversees entertainment coverage. When she’s not writing or editing, you can find her reading fantasy novels or playing Dungeons & Dragons.
