Activision Blizzard Settles for $54 Million in Landmark Discrimination Case

Activision Blizzard, the renowned video game maker, has agreed to a $54 million settlement to resolve discrimination claims brought by California’s civil rights agency. This landmark agreement, still pending court approval, addresses allegations that the company engaged in unfair practices against female employees, including unequal pay and promotion opportunities compared to their male counterparts.

The allegations significantly impacted Activision’s stock in 2021 and were a factor in Microsoft’s takeover bid in January 2022, culminating in a $69 billion acquisition deal in October. The lawsuit, filed by the California civil rights agency in July 2021, accused Activision Blizzard of fostering a workplace environment where female employees faced continual sexual harassment, limited leadership roles, and lesser compensation than male colleagues.

Employee activism played a key role in bringing these issues to the forefront, with staff criticizing the company’s defensive stance and organizing walkouts. The settlement terms cater to women who were employed or contracted by Activision Blizzard between October 2015 and December 2020, allocating $45.75 million for compensation.

Additionally, Activision Blizzard has committed to adopting fair pay and promotion practices. While the company recognizes the significance of the settlement, it also pointed out that the California Civil Rights Department has withdrawn sexual harassment allegations in an amended complaint. The settlement states that no court or independent investigation has confirmed systemic sexual harassment or misconduct by the company’s board or CEO.

This agreement follows Activision Blizzard’s previous settlements, including an $18 million agreement with the U.S. Equal Employment Opportunity Commission in September 2021 over similar claims, and a $35 million settlement with the SEC earlier this year for failing to maintain workplace complaint controls.