Activision Blizzard Settles EEOC Sexual Harassment Lawsuit For $18 Million
Activision Blizzard and the U.S. Equal Employment Opportunity Commission have officially settled their ongoing lawsuit to the tune of $18 million.
Activision Blizzard has officially settled one of the multiple lawsuits it’s currently facing. Yesterday, U.S. District Judge Dale Fischer approved an $18 million settlement between Activision Blizzard and the EEOC, resolving the federal sexual harassment lawsuit brought against the game publisher.
Per the final details of the settlement, any employee working at Activision Blizzard between Sept. 1, 2016 and present day, can join the settlement. They can claim sexual harassment, retaliation, or pregnancy discrimination. However, the EEOC’s settlement is opt-in only. Anyone seeking recompense will need to submit paperwork in order to receive restitution.
The decision comes after a long string of complaints from Activision Blizzard employees and former employees. Including two women who spoke to the Washington Post about their intention to apply to be claimants in the case:
“For me, I just want a resolution. I want something to happen, I don’t want it to be drawn out anymore. I think that’s the most important thing at this point because I think people need to see that it has an ending and an outcome.”
Currently, Microsoft is trying to purchase Activision Blizzard for $70 billion. CEO Bobby Kotick, accused of fostering the “frat boy workplace culture” that led to these complaints made $150 million in 2020 and is expected to receive a $400 million payout.
And under that context, many employees and their allies expressed dissatisfaction with the EEOC settlement. Critics of the settlement include the California Department of Fair Employment and Housing (DFEH) who have brought their own suit against Activision Blizzard. Their case may be hampered by the judgement. Other critics include Communications Workers of America labor union, who have publicly called the settelement “woefully inadequate.”
Last December, Riot Games settled their own gender-based discrimination suit with California state agencies and employees for $100 million.
The DFEH released a statement last week signalling their intention to continue to prosecute their action against Activision:
“The DFEH will continue to vigorously prosecute its action against Activision in California state court. In recent weeks, DFEH defeated Activision’s request that the Court dismiss DFEH’s case, and DFEH has sought documents and other evidence of sexual harassment, discrimination and retaliation violations over many years by Activision. The Court has set a trial date in February 2023.”
Many regard the settlement as a victory for Activision Blizzard, which recorded a $8.8 billion revenue in 2021. Including Activision’s own legal counsel, who said it was “fair to characterize” the settlement as a victory.
As part of the agreement, Activision will expand mental health counseling services. As well they’ll add an evaluation process for employees to leave feedback about their bosses. Despite the lack of precedent for these measures making any kind of change or impact on workplace culture, Activision remains confident that this time will be different.
The agreement will be in effect for three years.
