Activision Blizzard has reached a settlement agreement with the California Civil Rights Department to pay $55 million in response to a civil-rights lawsuit. The settlement resolves claims made against the gaming company, including allegations of sexual harassment, discrimination, and pay disparities by women employees. The California Civil Rights Department filed the lawsuit in 2021, accusing Activision Blizzard of denying promotion opportunities and paying women less than their male counterparts. As part of the settlement, Activision Blizzard will establish a settlement fund to compensate women employees and contract workers and will take steps to ensure fair pay and promotion practices within the company.
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Activision Blizzard Settles California Civil-Rights Lawsuit for $55 Million
After facing a California civil-rights lawsuit over allegations of sexual harassment, discrimination, and pay disparities, Activision Blizzard has reached an agreement to settle the case for $55 million. The settlement, subject to court approval, was announced by the California Civil Rights Department and aims to address gender-based pay and promotion claims against the video game developer. This article will delve into the details of the settlement, the background of the lawsuit, the settlement fund allocation, the involvement of the California Civil Rights Department, Activision Blizzard’s response to the settlement, and the potential impact on the company and its CEO.
Agreement Details
The settlement agreement announced by the California Civil Rights Department is subject to court approval. It is designed to address claims of gender-based pay and promotion discrimination at Activision Blizzard. The focus of the lawsuit and subsequent settlement is on rectifying these issues within the company.
Background of the Lawsuit
The California civil-rights lawsuit against Activision Blizzard was filed by the California Civil Rights Department in 2021. The lawsuit alleged sexual harassment, discrimination, and pay disparities within the company. These accusations led to increased scrutiny of Activision Blizzard and its leadership.
Additionally, the lawsuit played a significant role in Microsoft’s acquisition of Activision Blizzard. The allegations brought forward by the lawsuit and the subsequent investigation by regulators placed pressure on the company, ultimately leading to its acquisition by Microsoft.
Settlement Amount
Under the terms of the settlement, Activision Blizzard will pay nearly $55 million to resolve the California civil-rights lawsuit. This settlement amount is the second-largest ever for the California Civil Rights Department, highlighting the severity of the claims made against the company.
Settlement Fund Allocation
The settlement funds will primarily be allocated towards compensating women employees and contract workers at Activision Blizzard. The creation of a dedicated settlement fund aims to provide direct relief and compensation to those who have been impacted by the company’s discriminatory practices.
Attorneys’ Fees and Costs
In addition to the $55 million settlement, Activision Blizzard will also pay over $9 million in attorneys’ fees and costs. These expenses cover the legal representation involved in the case and reflect the complexity and magnitude of the lawsuit.
Steps to Ensure Fair Pay and Promotion Practices
As part of the settlement agreement, Activision Blizzard has committed to taking measures to ensure fair pay and promotion practices within the company. One step towards achieving this goal is engaging an independent consultant to evaluate the compensation and promotion policies of the organization. This assessment aims to identify and address any existing disparities.
Withdrawal of Sexual Harassment Allegations
While the original complaint filed by the California Civil Rights Department included allegations of widespread workplace sexual harassment at Activision Blizzard, the amended complaint focuses solely on gender-based pay and promotion claims. The department’s decision to withdraw the sexual harassment allegations suggests a shift in the focus of the lawsuit towards rectifying systemic issues related to compensation and advancement.
Activision Blizzard’s Response
Activision Blizzard has expressed its gratification with the amended complaint filed by the California Civil Rights Department, which withdraws the previous claims of widespread workplace harassment at the company. The organization has committed to implementing new obligations outlined in the settlement agreement and ensuring fair compensation and promotion policies for all employees. Activision Blizzard’s response indicates its dedication to addressing the concerns raised by the lawsuit and its commitment to creating an inclusive work environment.
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Impact on Activision Blizzard and Its CEO
The settlement of the California civil-rights lawsuit could have significant implications for Activision Blizzard and its CEO, Bobby Kotick. The allegations and subsequent investigation put substantial pressure on the company, ultimately leading to its acquisition by Microsoft. While the settlement marks a step towards resolving the issues outlined in the lawsuit, it may still impact the reputation of Activision Blizzard and its leadership.
Comparison to Previous Settlements
The settlement amount of nearly $55 million places this case as the second-largest settlement ever for the California Civil Rights Department. The largest settlement to date was a $100 million agreement with Riot Games, another video game developer based in Los Angeles, to resolve gender-discrimination allegations. The comparison to previous settlements highlights the severity of the claims made against Activision Blizzard and the steps being taken to rectify the situation.
In conclusion, Activision Blizzard’s settlement of the California civil-rights lawsuit for $55 million signifies a significant step towards addressing gender-based pay and promotion claims within the company. The settlement funds will be used to compensate women employees and contract workers, while steps will be taken to ensure fair pay and promotion practices going forward. Although the lawsuit and subsequent settlement have undoubtedly impacted Activision Blizzard and its CEO, the organization’s commitment to implementing new obligations and improving its compensation and promotion policies demonstrates a dedication to rectifying its past mistakes and fostering a more inclusive work environment.