US Judge Approves Activision Blizzard Sexual Harassment Claim

(RTTNews) - A federal judge has okayed video game publisher Activision Blizzard's (ATVI) settlement deal with the US Equal Employment Opportunity Commission or EEOC after the later found significant evidence of sexual harassment, pregnancy discrimination and related retaliation at the company.

The settlement is expected to reduce risk as Microsoft will acquire Activision Blizzard for a sum of $68.7 billion in what's being touted as the largest technology acquisition to take place in the US till date. In September, the company had first announced the settlement with EEOC. Two months prior to that, the California's Department of Fair Employment and Housing had filed a suit against Activision, saying that it underpaid women and had a "frat boy culture" and that it's a "breeding ground for harassment and discrimination against women."

Judge Dale Fischer, of the US District Court for California's Central District, signed off on the EEOC consent decree late on Tuesday. Fischer had denied the California agency's motion to get involved in the EEOC's case. The California agency had appealed to the US Court of Appeals for the 9th Circuit, which on Monday struck down its emergency stay motion in the EEOC case.

In a media briefing on the case on Wednesday, Anna Park, regional attorney for the EEOC's Los Angeles district office, said, "No one is automatically entered into the claim. People can apply for claims of sexual harassment, pregnancy discrimination or related retaliation they experienced from September 2016 to the present. People can wait for the California agency's case, which would only apply in California, to play out or file individual cases if they wish."

Park said that if anyone is of the opinion that the funds isn't large enough should know that Fischer, the judge, ruled that the provisions of the consent decree are adequate.

Three female claimants who declined to provide their names described during Wednesday's briefing their alleged experiences at the company.

In a statement issued earlier, Activision Blizzard reiterated its commitments in the EEOC settlement. It agreed to form an $18 million fund to compensate claimants and allocate any remaining money to certain non-profit organizations focused on the advancement of women in video games and technology, or to awareness of sexual harassment and gender equality.

A company spokesperson said, "We apologize to any victims who suffered as a result of conduct that did not live up to our values."

Activision Blizzard said that it has already quadrupled the size of its ethics and compliance team, removed mandatory arbitration for sexual harassment and discrimination claims for incidents that happened after October 28, 2021, tightened its alcohol policies, and brought about a zero-tolerance policy on harassment and discrimination.

The EEOC is entitled to file a motion in court if the company doesn't comply. Lawyers said that said possible outcomes include an extension of the current three-year decree term and penalties.