Since 2021, Activision Blizzard has faced serious allegations of sexual harassment and workplace misconduct. Now the publisher is paying a $35 million fine to settle the SEC’s charges.
The news surrounding Activision Blizzard doesn’t let up. After the EU regarding the purchase by Microsoft a antitrust warning pronounced, the publisher may also pay a penalty from the US Securities and Exchange Commission (SEC).
Charges settled out of court
Activision Blizzard has to pay $35 million to allegations of workplace misconduct. The SEC investigation began in September 2021. At that time, news circulated reporting widespread misconduct and harassment within the company. CEO Bobby Kotick and other senior staff were then scheduled to provide their internal communications on the response to the reports.
However, following the completion of the investigation, the SEC accused the publisher of not having in place controls or disclosure procedures, and as a result employee complaints of workplace misconduct could not be adequately recorded and evaluated.
Therefore, management lacked sufficient information to fully understand the content of the complaints. As a result, it was not possible to determine whether there were any major issues that should have been disclosed to investors.
Another indictment by the SEC alleges that Activision Blizzard violated whistleblower protection regulations. Former employees were required to inform the company as soon as they received a request for information from the Commission.
The $35 million payment settles the charges, which is why Activision Blizzard is glad the matter was resolved. The company has neither admitted nor denied the allegations made by the SEC. The order was recognized and the “disclosure processes in relation to workplace reporting improved” and the “separation agreement language updated.”
In 2021, Activision paid Blizzard $18 million in a lawsuit brought by the Equal Employment Opportunity Commission after the company was accused of sexual harassment. When the California government sued the publisher, Activision Blizzard was labeled a “hotbed of harassment and discrimination against women.”
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Accordingly, one can only hope that working conditions at Activision Blizzard will improve in the future. The management team has so far not recognized the efforts made by the employees to set up a trade union.
Those: Eurogamer
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