A federal judge in Los Angeles is expected to approve a settlement worth $18 million in a case involving video game giant Activision Blizzard, Inc. and the Equal Employment Opportunity Commission (EEOC).
The case was initiated in July of 2021 when the video game company was sued by the California Department of Fair Employment and Housing (DEFH) for allegedly creating a hostile work environment. This included allegations involving gender discrimination and sexual harassment.
US District Judge Dale Fischer stated in the order that the settlement deal was adequate but asked the company and the EEOC to provide more information before granting final approval. The DEFH is the EEOC’s state-level representative. Last year, DFEH appealed Fischer’s ruling denying its motion to intervene in the case and object to the settlement. In the current order, Fischer cited to her earlier decision by writing that “many of the statements in (the DFEH’s) objections are simply inaccurate, based on speculation, or otherwise address issues that the DFEH should not be concerned with.”
When the lawsuit was filed in the Los Angeles Superior Court, multiple women stepped forward to enhance and confirm the allegations brought against the company. The lawsuit followed a three year investigation by the EEOC, which revealed the issues present before the court. A complaint filed in September 2021 showed that the type of behavior condemned by the EEOC continued to exist within the company and company culture after investigation findings were submitted.
Women working at Activision Blizzard compared working for the company to living in a “fraternity house” and claimed that male employees were allowed to drink alcohol on the job and harass females both sexually and verbally without repercussion from president J. Allen Brack. The lawsuit alleged that Brack was not only aware of the behavior within the company, but actively took steps to enable the discrimination and harassment to continue. Many employees named in the lawsuit engaged in open and obvious sexual harassment, and employees even admitted to calling Brack’s office the “Cosby suite” named after Bill Cosby. A former employee severely targeted and harassed reportedly committed suicide.
In addition to the sexual harassment, numerous claims involved acts of discrimination stemming from higher-ups in the company. A manager stated he could not risk giving promotions to female employees as they may become pregnant and choose to stay home with their children. Akin to that, there were reports of pay discrimination among divisions within the company.
As part of this settlement, the company agreed to create a fund “to compensate and make amends to eligible claimants.” The company also agreed to improve training tools in order to enhance workplace policies and practices, along with the hiring of an equal employment opportunity coordinator to monitor internal practices. The company will bring in a neutral third-party consultant approved by the EEOC. The court was satisfied with the monetary relief provided and thought the non-monetary provisions were “fair, reasonable, and adequate.”
Activision Blizzard has stated that it remains dedicated to eliminating all discrimination and harassment within the company.
