Microsoft's Activision Blizzard Settles California Gender Discrimination Case For $55M
Game developer Activision Blizzard, now a subsidiary of Microsoft Corporation (NASDAQ:MSFT), has agreed to a nearly $55 million settlement with the California Civil Rights Department over a gender discrimination case involving female employees and contractors.
What Happened: The settlement will cover legal costs and offer relief to women who experienced discrimination between October 2015 and December 2020. From the total settlement, $46 million will be directed to a fund for the affected women, reported CNBC.
The announcement comes nearly two years after Activision Blizzard settled a similar case with the U.S. Equal Employment Opportunity Commission by establishing an $18 million fund for victims.
For the uninitiated, in 2021, the California agency sued Activision Blizzard for alleged sexual harassment, discrimination, and retaliation. Reports later emerged suggesting that CEO Bobby Kotick was informed about these allegations but did not fully disclose them to the company’s board.
Following these disclosures, Activision Blizzard’s stock took a hit, opening the door for Microsoft’s acquisition discussions. The $69 billion deal was eventually approved in October, following an in-depth examination by U.S. and European regulatory bodies.
The California Civil Rights Department has stated that the settlement is pending approval from the Los Angeles County Superior Court. As part of the agreement, Activision Blizzard is expected to maintain its commitment to inclusive recruiting and must inform potential employees about opportunities for pay negotiation.
Why It Matters: This settlement comes after a series of tumultuous events for Activision Blizzard. Earlier this year, the company’s CEO, Kotick, announced his resignation following Microsoft’s acquisition of the company. Kotick’s exit marked the end of his 30-year tenure at the company.
Microsoft’s acquisition of Activision Blizzard received approval after the company agreed to sell some of Activision’s game streaming rights to Ubisoft Entertainment to alleviate competition concerns.
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This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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