Activision Blizzard responds to harassment allegations, slams media and California civil rights agency

Activision inventory fell 1.7% to $74.11 Thursday. The enterprise is becoming obtained by Microsoft Corp. in a deal valued at $68.7 billion that was introduced in January.

See Now: Activision Blizzard states assessment observed no evidence senior execs overlooked or downplayed gender harassment

Given that 2018 Activision Blizzard
ATVI,
-1.88%
has been participating with the two the federal Equivalent Work Opportunity Fee, or EEOC, regarding workplace challenges, and the DFEH, about pay back equity, it said.

“We have produced important development,” Activision extra. “The firm engaged a large-ranging staff of advisers to assist in this hard work, from law firms to authorities in office difficulties.”

Past year Activision fired various unnamed workers and reprimanded other folks related to allegations of sexual harassment and discrimination before that yr, according to a media report.

However, the enterprise has clashed with the DFEH, which is the point out agency billed with imposing California’s civil legal rights rules.

See Now: Activision Blizzard fires, reprimands a number of workforce around harassment, discrimination allegations

In July 2021 the agency submitted a civil suit from Activision, which alleged that feminine workers have been issue to discrimination about pay out and promotions as nicely as subjected to sexual harassment. The suit also said the movie activity publisher was informed of the alleged concerns but did not do more than enough to protect against it. In response to the lawsuit, Activision unveiled a assertion that it contained “distorted, and in a lot of situations bogus descriptions of Blizzard’s previous.”

Additional than 2,000 latest and former Activision workforce signed a letter decrying the company’s response to the lawsuit, according to stories.

In September 2021 Activision was strike with a federal labor grievance alleging mistreatment of workforce protesting against the company’s response to sexual harassment and discrimination allegations.

Activision’s board and its advisers have “diligently reviewed” allegations by the DFEH and the media, the enterprise claimed in its regulatory submitting Thursday.

“Contrary to several of the allegations, the board and its external advisers have identified that there is no evidence to recommend that Activision Blizzard senior executives at any time intentionally ignored or tried to downplay the cases of gender harassment that occurred and had been described,” the firm said. “That operate also has not unearthed any evidence, directly or indirectly, suggesting any attempt by any senior govt or staff to conceal facts from the board.”

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Right after what Activision described as an exhaustive overview, outside advisers identified the board “never intentionally ignored or tried to downplay the occasions of gender harassment that occurred and ended up claimed,” the submitting explained. “The review of contemporaneous documentation and statements by pertinent persons demonstrates that media criticism of the Board and Activision Blizzard senior executives as insensitive to workplace matters is without merit.”

Whilst there were some substantiated occasions of gender harassment, “those unlucky conditions do not assist the summary that Activision senior leadership or the board were being conscious of and tolerated gender harassment or that there was at any time a systemic challenge with harassment, discrimination or retaliation,” Activision extra.

Activision explained it has been matter to an “unrelenting barrage” of media criticism that attempts to paint the enterprise with “the stain” of a very smaller portion of the worker population who engaged in undesirable actions and were being disciplined for it.

“Much of this originated with the very inflammatory, built-for-push allegations of the DFEH,” Activision extra. “As our outside the house advisers made very clear, the DFEH was not assigned to look into harassment in its agreement with the EEOC, nor did it in actuality complete an investigation into troubles of harassment at Activision Blizzard.”

The organization reported there has also been no court getting, verdict, or ruling concluding the DFEH allegations to be genuine.

See Now: Activision Blizzard hit with federal labor criticism alleging mistreatment of protesting staff members

The DFEH has but to react to MarketWatch’s ask for for remark on the Activision filing.

Activision also engaged Gilbert Casellas, a previous chair of the EEOC to conduct a assessment of gathered investigated studies of gender harassment from across the United States among Sep. 1, 2016 and Dec. 31, 2021.

“Based on his evaluate, Mr. Casellas concluded that there was no popular harassment, sample or exercise of harassment, or systemic harassment at Activision Blizzard or at any of its enterprise units through that time body,” the corporation said, in its submitting. “Mr. Casellas more concluded that, based mostly on the volume of stories, the quantity of misconduct mirrored is comparatively small for a enterprise the dimension of Activision Blizzard.”

Previous 12 months Activision agreed to spend $18 million as aspect of a settlement with the EEOC. In its filing Thursday, the enterprise explained the settlement is already offered for eligible staff members to submit promises.

Activision also criticized the DFEH above its response to the EEOC settlement.

“The DFEH’s attempts to interfere with the EEOC settlement, which was identified to be reasonable and sensible by a federal court, have been denied 6 periods,” it said. “That claimed, rather than dismiss these criticisms, the board and management have taken these allegations seriously and according to exterior advisers, have investigated these correctly.”

Activision shares have obtained 11% in the yr to date, while the S&P 500
SPX,
-3.25%
has fallen 23%.

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