Activision Blizzard CEO Bobby Kotick speaks on the CNBC Evolve conference November nineteenth in Los Angeles.
Jesse Grant | CNBC
Microsoft-owned Activision Blizzard has agreed to settle a case from a California state agency that alleged the video game publisher discriminated against women, including denying them promotion opportunities and paying them less.
California’s Civil Rights Department said in a statement on Friday that as a part of a proposed settlement agreement, Activision Blizzard pays nearly $55 million to offer relief to female employees and contractors from October 2015 to December 2020 and canopy legal fees. About $46 million of the overall will go to the fund for affected women, the agency said within the statement.
The news comes almost two years after Activision Blizzard settled a case from the U.S. Equal Employment Opportunity Commission, which pointed to sexual harassment, pregnancy discrimination and retaliation. Because of this, the corporate agreed to form an $18 million fund to pay victims.
In 2021, the agency, then referred to as the Department of Fair Employment and Housing, filed a suit against the corporate, presenting allegations of sexual harassment, discrimination and retaliation. Months later, the Wall Street Journal reported that while Activision Blizzard CEO Bobby Kotick was aware of allegations of misconduct contained in the company, he didn’t share all relevant information with its board.
Shares fell, and Microsoft subsequently began talks to amass Activision Blizzard, the maker of Call of Duty.
The $69 billion deal closed in October after regulators within the U.S. and Europe looked fastidiously at it. The Federal Trade Commission argued in San Francisco appellate court last week that a federal judge made mistakes in rejecting the regulatory agency’s try to stop the businesses from completing the transaction.
The Los Angeles County Superior Court must approve Activision’s settlement with the state agency, in accordance with the statement. The agency will file a recent grievance that excludes prior harassment allegations, in accordance with the proposed settlement agreement, which CNBC viewed.
The agreement would require Activision to maintain up efforts around inclusion of underrepresented people in recruiting. Except when compensation is non-negotiable, the corporate would must tell job applicants in writing initially of hiring and promotion processes that they’ll negotiate their pay.
“We appreciate the importance of the problems addressed on this agreement and we’re dedicated to completely implementing all the brand new obligations we’ve assumed as a part of it,” Activision said in an announcement to CNBC.
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