INSIDE THE ACTIVISION BLIZZARD LAWSUIT

There’s something rotten at ActiBlizzard’s heart…

On July 20th, California’s Department of Fair Employment and Housing filed a lawsuit against Activision Blizzard collecting “numerous complaints about unlawful harassment, discrimination, and retaliation” at the company. Employees the DFEH spoke to said Activision Blizzard has a “frat boy” culture that’s been a “breeding ground for harassment and discrimination against women.” In the period since, more than 3,000 Activision Blizzard employees have signed an open letter to management speaking up for victims and making a call for “official statements that recognise the seriousness of the allegations and demonstrate compassion for victims of harassment and assault.” On top of this, a number of senior developers have left the company.

It’s been a dramatic period for Activision Blizzard, including a response plan from CEO Bobby Kotick and a work stoppage by hundreds of employees. And this is just the beginning: Court proceedings are still pending and could last for months or years if the case goes to trial.

WHAT SHOULD WE EXPECT FROM THE LAWSUIT ITSELF?

The Department of Fair Employment and Housing’s lawsuit has started a public maelstrom for Activision, but a court hearing could be weeks or months off—if the case goes to a trial at all.

“I don’t see either case as going to an actual trial,” lawyer Kellen Voyer tells PC Gamer, referring to the DFEH’s case against Activision Blizzard as well as one it filed against Riot Games. “Typically the parties will settle out once the defendant has a better idea of the evidence being brought by the state and the strength of its case. The current negative press… is another reason why the companies will not want to go through a long, public trial.”

The DFEH’s news page shows a number of settlements from the past three years to resolve discrimination and harassment cases, for sums ranging from US$50,000 to US$6.2 million. Voyer points out that a sexual harassment case brought by the state is stronger than a case from an individual, partially becasue it’s public rather than private arbitration. (Ending mandatory arbitration in Activision Blizzard contracts is one of the demands listed by employees who participated in the July 28 work stoppage.)

Because the DFEH’s investigation into Activision Blizzard must have been ongoing for some time, Voyer says the lawsuit is a way to publicly push Activision Blizzard into a settlement. The DFEH filing does request a jury trial, but this is standard practice and doesn’t rule out the likely possibility of a settlement before trial begins.

“Activision Blizzard will fight tooth and nail to avoid [a trial] as I would expect a jury (especially in California) to come down hard on the company,” Voyer says. “A settlement is likely before it gets to that stage.”

Going after a company as big as Activision Blizzard gives the DFEH a chance to make a public spectacle; even if it doesn’t have strong enough evidence to push the company into a multi-million dollar settlement, it could have significant ramifications.

“To make an example of a company, even through the filing of the case and the negative PR that results for the company, will hopefully effectuate change through deterrence: by putting companies on notice that there are real, material, ramifications for failing to address toxic culture,” Voyer says.

It’s still possible that this case goes to trial. If it does, the DFEH will likely be pushing for big monetary penalties and for Activision Blizzard to open itself up to oversight as it enacts plans to repair its workplace issues.

If Blizzard won at trial, it would likely push for no monetary damages and, in Voyer’s words, “the usual corporate, general promise of ‘we will change and do better.’”