Activision Blizzard to settle CA unequal pay case for $56M

Edited at 7:45pm PT — The unique model of this text incorrectly said the settlement was associated to sexual harassment, not unequal employment practices on the idea of intercourse. Now we have up to date the article to replicate this info and we remorse the error.

Activision Blizzard has reportedly entered into an settlement with the California Civil Rights Division to settle its 2021 case alleging intercourse discrimination in its employment practices.

Subsequent week, the California CRD will file an amended declare withdrawing all allegations of systemic harassment-related in keeping with experiences from the Wall Street Journal and documentation seen by VentureBeat. This settlement will resolve the amended declare that focuses solely on claims of unequal compensation and promotion practices on the idea of intercourse from 2015-2020. 

Notably, the settlement goes additional than merely withdrawing these allegations. By way of the settlement, the California CRD agrees that “no court docket or any impartial investigation has substantiated any allegations” about “systemic or widespread sexual harassment at Activision Blizzard,” nor “that Activision Blizzard senior executives ignored, condoned or tolerated a tradition of systemic, harassment, retaliation or discrimination.” Moreover, the settlement additionally stated that its investigation discovered no proof of wrongdoing by Robert Kotick, CEO of Activision Blizzard, or its board.

The state’s knowledgeable witnesses testified {that a} gender pay hole existed general, however a pay disparity was not discovered amongst workers of the identical rank. This knowledge aligns with the corporate’s Pay Fairness Assessment for 2020 and its 2023 Transparency Report. The amended declare and settlement settlement might be filed in court docket early subsequent week.

Per the settlement, Activision Blizzard’s most settlement will whole almost $56 million. The writer will apart as a lot as $46.75 million to pay ladies workers who stated they’d acquired inequitable pay from 2015-2020. An extra $9.125 million was awarded to cowl lawyer’s charges.

Activision Blizzard has maintained its innocence each with reference to unequal pay and allegations of sexual harassment. The corporate reportedly fired 37 workers within the months that adopted these allegations to handle “remoted situations” of office misconduct. Moreover, the corporate settled its Federal EEOC grievance in March 2022 for $18 million.

Earlier this yr, Microsoft handed key regulatory hurdles within the U.S. and U.Ok. acquired Activision Blizzard in October. This deal was partially a results of the allegations of sexual harassment and discrimination as a result of the writer’s inventory worth fell in response.

Riot Video games confronted an analogous lawsuit from the California Civil Rights Division. The case settled for $100 million earlier this yr. Of the sum, 80% went to over 1,500 ladies who labored with the corporate between 2014 and 2021.

At 8pm PT Activision Blizzard offered an announcement concerning the settlement included in full beneath.

We’re gratified that we’ve reached an settlement with the California Civil Rights Division (CRD) in the present day, because the CRD has now introduced in a press assertion. We respect the significance of the problems addressed on this settlement and we’re devoted to totally implementing all the brand new obligations we’ve assumed as a part of it. We would like our workers to know that, because the settlement specifies, we’re dedicated to making sure truthful compensation and promotion insurance policies and practices for all our workers, and we are going to proceed our efforts concerning inclusion of certified candidates from underrepresented communities in outreach, recruitment, and retention.

We’re additionally gratified that the CRD has agreed to file an amended grievance that solely withdraws its 2021 claims alleging widespread and systemic office harassment at Activision Blizzard. Because the CRD acknowledged explicitly within the settlement, “CRD is submitting together with a Proposed Consent Decree a Second Amended Criticism that withdraws, amongst different allegations and causes of motion, the Fifth Reason for Motion – “Employment Discrimination – Due to Intercourse – Harassment.” Because the CRD additionally expressly acknowledged within the settlement, “no court docket or impartial investigation has substantiated any allegations that there was systemic or widespread sexual harassment at Activision Blizzard.” As well as, the CRD has acknowledged that no court docket or impartial investigation substantiated any allegations that “Activision Blizzard’s Board of Administrators, together with its Chief Government Officer, Robert Kotick, acted improperly with regard to the dealing with of any situations of office misconduct.”