Activision’s $50 Million Settlement Closes Chapter on Discrimination Lawsuit

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Gaming giant Activision Blizzard agreed to a $50 million settlement to resolve a 2021 lawsuit brought by California’s Civil Rights Department (CRD).

The legal action alleged that the company engaged in discriminatory behaviors toward its female workforce, encompassing practices such as withholding promotion opportunities and providing unequal compensation.

The lawsuit stemmed from a two-year investigation that highlighted allegations of systematic underpayment, lack of promotions for women, and a workplace culture that reportedly condoned sexual harassment within the company. 

While the CRD will withdraw claims of systemic sexual harassment as part of the settlement, Activision Blizzard has agreed to address other allegations, including gender-based discrimination in promotions and compensation.

As per the settlement’s conditions, Activision Blizzard will introduce further measures aimed at guaranteeing equitable practices concerning salary and advancement opportunities.

Activision Blizzard’s Prior Resolution

activision's-$50-million-settlement-closes-chapter-on-discrimination-lawsuit
Gaming giant Activision Blizzard agreed to a $50 million settlement to resolve a 2021 lawsuit brought by California’s Civil Rights Department (CRD).

Furthermore, the company will provide monetary compensation to women who served as employees or contract workers in California between October 12, 2015, and December 31, 2020. 

Nevertheless, it’s important to note that the settlement’s finalization hinges upon receiving approval from the court, as explicitly emphasized in the statement released by the CRD

In response to the settlement, Activision Blizzard emphasized a crucial point from the agreement: the CRD expressly acknowledged that no independent investigation or court-substantiated claims of systemic or widespread sexual harassment within the company. 

The gaming corporation additionally stated that investigations revealed no wrongdoing by its board of directors or chief executive officer concerning their management of workplace misconduct incidents.

This settlement follows a prior agreement made by Activision Blizzard in 2021 to pay up to $18 million to resolve similar allegations made by the Equal Employment Opportunity Commission. 

Notably, this development occurred after Microsoft acquired Activision Blizzard for nearly $69 billion in October, underscoring the ongoing commitment to address workplace culture and gender-related issues within the gaming industry.

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