Activision Blizzard has settled a lawsuit alleging a culture of sexual harassment at the company. According to a press release from California’s Civil Rights Department (CRD), the gaming company will pay about $54 million as part of the settlement.
The CRD, which protects civil rights in California, filed a lawsuit in 2021 accusing Activision Blizzard of allowing sexual harassment and discrimination against women employees. They said there was a “frat boy” culture where women faced harassment. After the lawsuit, many employees protested, and high-level executives left the company.
Sadly, the company’s CEO, Bobby Kotick, knew about the harassment for years but did not fix the problems. This made many people angry. Activision Blizzard is now owned by Microsoft after they bought the company for $68 billion.
As part of the settlement agreement, the CRD said investigations did not find misconduct by Kotick or prove the harassment claims filed in the lawsuit. However, the money will help compensate employees who face unfair treatment. About $45 million will go into a fund to pay affected workers.
If a court approves the settlement, Activision Blizzard will pay $54.8 million in total. Most of this money will directly assist employees who have faced discrimination. This settlement brings the lawsuit filed by California regulators to an end. Going forward, workers hope Microsoft creates a respectful environment without harassment when they take over after the deal finishes. The gaming giant has worked to regain trust and do better for employees.
