The Activision Blizzard controversy refers to a series of allegations and lawsuits regarding sexual harassment, discrimination, and a culture of "frat boy" behavior within the company. These claims led to a lawsuit by the California Civil Rights Department, as well as settlements and other legal actions, impacting the company's public image and operations. [
1,
2,
3,
4,
5,
6]
Key Issues:
- Sexual Harassment: The lawsuit alleged that female employees were subjected to sexual harassment and discrimination, including being harassed by male employees, who sometimes consumed alcohol and engaged in inappropriate behavior towards them. [1, 3]
- Gender Discrimination: The allegations included discrimination in pay, promotions, and other employment opportunities, with women being assigned to lower-paid positions and receiving less starting pay than their male counterparts. [5, 7]
- "Frat Boy" Culture: The lawsuit painted a picture of a workplace where male employees were allowed to engage in behaviors that were considered inappropriate and offensive to female employees. [1, 2]
- Whistleblower Protection: The SEC also found that Activision Blizzard violated whistleblower protection rules by including clauses in separation agreements that required former employees to notify the company if they received requests for information from regulators. [8, 9, 10, 11]
Legal Actions:
- Civil Rights Department Lawsuit: The California Civil Rights Department filed a lawsuit against Activision Blizzard in 2021, alleging violations of California's Equal Pay Act and Fair Employment and Housing Act. [5, 7]
- Settlements: Activision Blizzard settled with the California Civil Rights Department for $50 million to resolve the lawsuit. They also settled with the SEC for $35 million for failing to maintain adequate disclosure controls and for violating whistleblower protection rules. [4, 8, 9]
- Other Legal Actions: The Equal Employment Opportunity Commission (EEOC) also filed a lawsuit against Activision Blizzard, alleging violations of Title VII of the Civil Rights Act of 1964. [6]