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Activision Blizzard will pay $55 million in discrimination lawsuit

By Nithya Bose in US business news, posted December 18, 2023

Microsoft-owned Activision Blizzard has agreed to pay nearly $55 million to a California regulator in a gender discrimination settlement.

The video game developer is charged with gender bias, denial of promotion opportunities, and pay disparities against female staff and contractors from October 2015 to December 2020.

Approximately $46 million of the payment is earmarked for a fund benefiting affected women, while the remainder covers legal fees.

This development follows a lawsuit filed in 2021 by California's Department of Fair Employment and Housing.

The suit presented accusations of sexual harassment, discrimination, and retaliation within the company.

Activision Blizzard had previously settled a case with the US Equal Employment Opportunity Commission in 2020.

After that case the firm agreed to a $18 million fund to compensate victims of sexual harassment and pregnancy discrimination.

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Activision said: “We appreciate the importance of the issues addressed in this agreement and we are dedicated to fully implementing all the new obligations we have assumed as part of it.”

The latest settlement agreement requires approval from the Los Angeles County Superior Court.

As part of the proposed resolution, the state agency will file a new complaint that excludes previous harassment allegations.

Activision Blizzard must promote inclusivity

The settlement terms mandate Activision Blizzard to intensify efforts to promote inclusivity in its recruitment practices.

Additionally, the company must inform job applicants in writing at the outset of hiring and promotion processes about their ability to negotiate compensation.

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However, the exception is when compensation terms are non-negotiable.

This resolution comes against Microsoft's acquisition of Activision Blizzard, a deal valued at $69 billion, concluded in October 2022.

The deal has been plagued by scrutiny by regulators in the US and Europe.

The Federal Trade Commission has contested the acquisition in a San Francisco appellate court, arguing that a federal judge rejected its attempt to block the transaction.

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