Activision Blizzard Maintains Innocence, Settles For $35 Million Anyway

Activision Blizzard Maintains Innocence, Settles For $35 Million Anyway
Images via Activision Blizzard

Written by 

Joseph Kime

Published 

6th Feb 2023 10:01

Though Activision Blizzard might be in the news for its ongoing struggles to merge with Microsoft, we haven't exactly forgotten what it's accused of being.

Last year saw massive accusations that the company maintained a "frat boy culture" and one that encouraged sexual harassment that overtly targetted women of colour.

This led to the gaming giant being sued for wrongful death after one employee took her own life, and her family blamed sexual assaults at the company for it.

Under CEO Bobby Kotick, Activision Blizzard has earned itself a troubling reputation, and even despite the swathes of accusations, it has always claimed innocence. But now, it's dishing out settlements anyway.

Activision Blizzard Pays Out $35 Million In Settlement

Activision Blizzard Maintains Innocence, Settles For $35 Million Anyway
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As further fallout from claims of a harmful workplace, Activision Blizzard, has still offered out a huge settlement payment in one of its ongoing cases. All of this comes while it still claims it's completely innocent and did everything by the book, 

A case that suggested that Activision Blizzard "lacked controls and procedures" to assess and collect employee claims of workplace misconduct has now come to a close.

The company attests to no wrongdoing on its part, but it was still found to "lack sufficient information" to know about its employee issues and has paid out a whopping $35 million settlement. The company has also agreed to a cease-and-desist order.

Speaking to Kotaku, Activision Media Relations VP Joe Christinat said, "We are pleased to have amicably resolved this matter.

"As the order recognizes, we have enhanced our disclosure processes with regard to workplace reporting and updated our separation contract language. We did so as part of our continuing commitment to operational excellence and transparency. Activision Blizzard is confident in its workplace disclosures."

SEC: Activision Blizzard's Complaint Control 'Is Illegal'

A full press release has been revealed after the case's conclusion, and it reports that Activision Blizzard has broken the law.

"The SEC's order finds that Activision Blizzard failed to implement necessary controls to collect and review employee complaints about workplace misconduct, says Jason Burt, Director of the SEC's Denver branch.

Burt continues, "Which left it without the means to determine whether larger issues existed that needed to be disclosed to investors.

"Moreover, taking action to impede former employees from communicating directly with the Commission staff about a possible securities law violation is not only bad corporate governance, it is illegal."

It's alarming to see that, according to the SEC, the company is engaging in illegal practices. This is while Activision Blizzard still insists on its innocence. 

While Activision Blizzard is looking to the future, it's still embroiled in rows like Kotick staying put and its controversial CFO stepping down. As it looks to a "green" future at Microsoft, the accusations keep on rolling.

Joseph Kime
About the author
Joseph Kime
Joseph Kime is the Senior Trending News Journalist for GGRecon from Devon, UK. Before graduating from MarJon University with a degree in Journalism, he started writing music reviews for his own website before writing for the likes of FANDOM, Zavvi and The Digital Fix. He is host of the Big Screen Book Club podcast, and author of Building A Universe, a book that chronicles the history of superhero movies. His favourite games include DOOM (2016), Celeste and Pokemon Emerald.
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