Activision Blizzard Agrees to Pay Damages in Settlement with California’s Civil Rights Department

Activision Blizzard's $55M Settlement A Missed Opportunity to Address Sexual Harassment Claims

Activision Blizzard settles discrimination lawsuit for $55M but avoids sexual harassment claims.

Illustration: James Bareham/Polygon

Oh, frack! Activision Blizzard is shelling out big bucks again! But this time, it’s not for some fancy in-game purchases, it’s to settle a lawsuit with California’s Civil Rights Department (CRD).

The CRD had some serious allegations against Activision Blizzard, claiming a “frat boy” culture and widespread sexual harassment. But hold your horses, folks! The settlement reached between the two parties has dismissed these claims. Activision Blizzard’s board of directors and CEO, Bobby Kotick, are off the hook, and no court or independent investigation has backed up the allegations. Looks like the CRD had to do a major climbdown.

Now, let’s talk about the moolah. Activision Blizzard will be forking out a whopping $55 million in damages. The bulk of this amount, $45.75 million, will go straight into compensating the women who were denied promotions, paid less, or discriminated against at the company. Hey, at least they’re getting some financial justice! The leftover cash will cover legal costs and go to charities that could surely use the extra dough.

But that’s not all! Activision Blizzard’s wallet ain’t the only thing taking a hit. They also have to hire an independent consultant to review their compensation and promotion policies. It’s like having a critical game reviewer go through all the flaws and bugs in your system, except this time it’s your whole company! Ouch. And they better not forget to “continue their efforts” to improve representation in their workforce. Let’s hope they level up their inclusivity game.

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Now, here’s the kicker. Activision Blizzard is now under the wing of Microsoft, so they can’t escape the judgment of gamers and the general public for their past actions. This settlement sure raises eyebrows, especially considering the storm of controversy it stirred up. Heads rolled, senior staffers left, and the whole industry took notice. But hey, at least they settled, right?

In a statement to GameTopic, Activision Blizzard welcomed the settlement and highlighted the withdrawal of the sexual harassment claims. They even called those claims “inflammatory.” Yeah, inflammatory like a fireball spell hitting your character in a dungeon crawl! Activision Blizzard wants everyone to know they’re committed to fair compensation and promotion policies. They’re also all about including qualified candidates from underrepresented communities. A true quest for diversity!

But let’s not forget, this isn’t the first time Activision Blizzard has opened up their wallet to settle a lawsuit. They’ve done this dance before. In fact, just last year, they agreed to a hefty $18 million compensation fund as part of an agreement with the Equal Employment Opportunity Commission. And they’ve even had to pay a whopping $35 million to settle charges from the Securities and Exchange Commission. Seems like their track record needs some major healing spells.

So, fellow gamers, what do you think about all this? Is Activision Blizzard turning over a new leaf? Or are they just trying to save face? Let us know in the comments below!