As a result of Activision Blizzard being investigated by the US Securities and Exchange Commission, the company has agreed to pay a settlement of $35 million. The investigation revolved around complaints around workplace misconduct at Activision Blizzard, and the company having broken the SEC’s whistleblower protection laws.
“The SEC’s order finds that Activision Blizzard failed to implement necessary controls to collect and review employee complaints about workplace misconduct, which left it without the means to determine whether larger issues existed that needed to be disclosed to investors,” said director of SEC’s Denver regional offiec Jason Burt.
“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.”
As part of the settlement, Activision Blizzard hasn’t had to admit or deny any wrongdoing part of the investigation.
“We are pleased to have amicably resolved this matter,” said an Activision Blizard spokesperson in a statement to VideoGamesChronicle. “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.”
The SEC investigation was originally launched all the way back in 2021, among several other lawsuits and investigations being launched into the company. The investigation revolved around sexual misconduct and discrimination at Activision Blizzard, with yet another lawsuit by the Department of Employment and Fair Housing in California on the grounds of widespread sexual harassment and discrimination against employees.