Activision Blizzard pays 35 million US dollars in compensation, because the US Securities and Exchange Commission has brought a case against the company for improper handling of workplace misconduct complaints.
A side note: Saudi Arabia approved the acquisition of Activision Blizzard by Microsoft
The pretext for this was the company’s allegations of cultivating a sexist and abusive workplace culture. Incidentally, the lawsuit was filed by the state of California, which underscores the seriousness of the allegations.
Recall that Microsoft is currently trying to acquire the company for $68.7B, likely as an excuse to also settle allegations that it has breached the SEC‘s whistleblower protection rule.
As a result, company management lacked sufficient information to understand the scope and substance of employee complaints of workplace misconduct and did not assess in time whether there were any significant issues that would require public disclosure.
The SEC also found that between 2016 and 2021, Activision Blizzard breached the Commission’s whistleblower protection rule by requiring former employees to inform the company if they received a request for information from Commission staff.
By the way, Activision Blizzard has agreed to pay $35 million in compensation, but it has not accepted or denied any of the allegations.