Activision Blizzard has officially agreed to pay $35 million in settlement charges. Read below for more information.
On February 3, 2023, the Securities and Exchange Commission announced that Activision Blizzard Inc. will be required to pay $35 million in settlement charges.
This announcement comes after years of various claims of sexual misconduct and more within the company's workplace.
The charges were directed toward Activision Blizzard's lack of disclosure controls and procedures that allowed them to make sure they were upholding a proper and safe workplace for employees.
They also are set to settle charges for violating an SEC whistleblower protection rule.
For 4 years, Activision Blizzard lacked controls and procedures to maintain a healthy workplace
From 2018 to 2021, Activision Blizzard was reported to not only lack proper controls and procedures. These were needed to collect complaints of workplace misconduct but was completely aware of it during the time.
This ignorance allowed for various forms of harassment to ensue within the company. There was absolutely no way of properly tracking employee complaints.
"The SEC’s order finds that Activision Blizzard failed to implement necessary controls to collect and review employee complaints about workplace misconduct", stated Jason Burt, Director of the SEC’s Denver Regional Office, in a recent press release. "Which left it without the means to determine whether larger issues existed that needed to be disclosed to investors."
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The company also directly violated a Commission whistleblower protection rule
Activision Blizzard also has to pay charges for violating a Commission whistleblower protection rule. The company required staff to report if they had received a request from the Commission's staff.
“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", said Burt.
Although they did not plead guilty, Blizzard Activision agreed to settle the $35 million penalty.
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