Video game company Activision Blizzard has agreed to pay nearly $55 million to settle a 2021 complaint from the California Department of Civil Rights.
The bulk of the financial settlement will go toward the creation of a fund of about $47 million to address pay disparities and discrimination claims related to the promotion of female employees. The remaining amount will be used to repay the state’s legal fees.
The first complaint alleged that the company allowed a “frat boy” culture to develop in which women experienced numerous incidents of sexual harassment and abuse. The settlement addresses an amended version of the complaint in which the state agreed to drop that aspect and focus on salary disparities.
Microsoft acquired Activision Blizzard for $68.3 billion in a deal that closed in October.
Women who were employees or contract workers of Activision Blizzard in California between October 12, 2015 and December 31, 2020 are eligible for financial relief under the terms of the settlement agreement.
“California remains strongly committed to advancing and upholding the civil rights of women in the workplace,” CRD Director Kevin Kish said in a news release. “If the court agrees, this settlement agreement represents a major step forward and will provide immediate relief to Activision Blizzard employees. At the California Department of Civil Rights, we will continue to do our part to fight for the rights of our state’s residents.”
Activision Blizzard, known for games like Duty, isn’t the only video game company exploring the experiences of female employees. Riot Games, publisher of League of LegendsEarlier this year, the company agreed to pay $100 million to settle a 2018 class-action lawsuit alleging gender discrimination.
Source: Deadline
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