Activision Blizzard Settles EEOC Lawsuit With $18 Million Fund For Victims

Activision Blizzard has agreed to the terms set by the U.S. Equal Employment Opportunity Commission to settle its lawsuit against it. As part of the settlement, Activision Blizzard will be setting up an $18 million fund for eligible claimants.

Those that are eligible to benefit from the fund are employees that were harassed and those harmed by the company's unfair management and discriminatory practices. The company said that any leftover funds will be given to groups and organizations fighting for equality in the video game industry.

Aside from the $18 million fund, Activision Blizzard had also committed to improving its workplace policies. The company also said it would be hiring a third-party consultant, who will be reporting directly to the company's Board of Directors, to work on overhauling its practices.

In its lawsuit, the EEOC had accused Activision Blizzard of discriminating against applicants and current employees based on their gender. The company was also accused of being complacent to harassment in the workplace.

The EEOC filed its lawsuit against the company on Monday. Activision Blizzard, the owner of blockbuster video game titles such as "Call of Duty," "Diablo," and "World of Warcraft," immediately worked with the regulator to settle the case.

Activision Blizzard's settlement with the EEOC is the culmination of a three-year investigation into the company's employment practices and workplace environment. The current settlement is still subject to court approval.

Apart from the EEOC, the U.S. Securities and Exchange Commission had also launched an investigation into the company's business practices and its CEO, Bobby Kotick. In a press release to investors, the company disclosed that Kotick had been subpoenaed by the SEC as part of its ongoing legal investigation.

The National Labor Relations Board has also launched an investigation into the company's practices after it received reports of alleged coercion and illegal interrogation.

In July, the company was sued by California's Department of Fair Employment and Housing after it concluded its years-long investigation. The lawsuit accused the company's top management of fostering a "sexist, frat-boy style culture" in the workplace. Blizzard Activision was also accused of repeatedly violating the state's equal pay and labor laws.