Microsoft-owned gaming company, Activision Blizzard, has agreed to settle a landmark lawsuit alleging a culture of sexual harassment and gender-based discrimination, paying about $54 million. Initiated by the California Civil Rights Department (CRD) in July 2021, the lawsuit claimed the company upheld a harmful “frat boy” culture, prompting staff walkouts and executive resignations. However, the CRD has stated no court or independent investigation substantiated the allegations, nor found evidence of wrongdoing by CEO Bobby Kotick, according to the settlement.
If court-approved, Activision Blizzard will pay approximately $54,875,000 to cover litigation costs and direct relief for employees. From this sum, $45,750,000 is specified for a settlement fund aimed at compensating workers. The company communicated last year that an internal investigation found no evidence of senior executives turning a blind eye to harassment allegations.
The lawsuit’s settlement follows Microsoft’s $68.7 billion acquisition of Activision Blizzard in late 2021, after overcoming regulatory obstacles. Despite the scandal, Kotick will remain with the company until the end of the year. In addition, in 2022, a separate settlement of $18 million with the US Equal Employment Opportunity Commission was approved concerning similar allegations against the company.
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