Activision settles suit for $18 million
Fund will pay those who were harassed or faced discrimination
Activision Blizzard agreed to set up an $18-million fund for employees who experienced sexual harassment and discrimination, pregnancy discrimination, and retaliation as part of a settlement with a federal employment agency on Tuesday.
The consent decree, which a federal judge said would be signed following the hearing Tuesday, comes in response to a suit filed against the Santa Monica video game company in September by the the Equal Employment Opportunity Commission, which alleged that Activision employees were subject to “severe” and “pervasive” sexual harassment in the workplace.
Anyone who worked at the company after September 2016 and believes that they were subject to harassment, discrimination and retaliation will be eligible to apply for a share of the cash payout. The company officially denied all wrongdoing as part of the settlement, which also included provisions for regular audits by the federal agency over the next three years.
But a number of suits against Activision Blizzard on sexual harassment and discrimination grounds remain active in the courts — and the California agency that led the way in prosecuting the company last year objected to Tuesday's federal settlement when it was first proposed last fall, arguing that it would undermine the state suit.
In a bombshell filing last summer, the California Department of Fair Employment and Housing alleged that Activision, and its Blizzard division in particular, fostered a “pervasive frat boy workplace culture” where managers led employees on drunken “cube crawls” to harass and grope female employees, where pay discrimination was rampant, and where those
who spoke up against the behavior were punished.
The filing kicked off months of employee unrest and new legal actions, including an employee walkout, petitions calling for the ouster of Chief Executive Bobby Kotick, and complaints and investigations by the EEOC, the Securities and Exchange Commission, and the National Labor Relations Board.
To receive funds from the $18-million fund established by Tuesday's consent decree, however, recipients must sign a document that waives their rights to recover any monetary damages or other relief that may come from the California lawsuit for sexual harassment, pregnancy discrimination or related retaliation.
Judge Dale S. Fischer rejected the California Department of Fair Employment and Housing's attempt to intervene in the consent decree in the fall, but the agency is appealing that decision. In the Tuesday hearing, on Zoom, the agency's lawyer, Jahan Sagafi, again raised objections, saying that “the EEOC never should have filed this case” while the state case was underway. Fischer again rejected the California agency's argument.