Activision Blizzard has reached a settlement deal with the Securities and Exchange Commission that sees the Call of Duty company pay $35 million to settle workplace charges.
Per the SEC’s press release, Activision Blizzard is paying the settlement fee, but not admitting or denying any wrongdoing, over claims that it “failed to maintain disclosure controls and procedures to ensure that the company could assess whether its disclosures pertaining to its workforce were adequate.”
Additionally, the $35 million settlement pertains to charges that Activision Blizzard “violated an SEC whistleblower protection rule.”
The SEC said Activision Blizzard, between 2018 and 2021, “lacked controls and procedures” among its business divisions related to how it collected and analyzed complaints about workplace misconduct.
“A a result, the company’s management lacked sufficient information to understand the volume and substance of employee complaints about workplace misconduct and did not assess whether any material issues existed that would have required public disclosure,” the SEC said. “Separately, the SEC’s order finds that, between 2016 and 2021, Activision Blizzard executed separation agreements in the ordinary course of its business that violated a Commission whistleblower protection rule by requiring former employees to provide notice to the company if they received a request for information from the Commission’s staff.”
SEC boss Jason Burt said Activision Blizzard’s actions left the company “without the means to determine whether larger issues existed and needed to be disclosed to investors.” As for the whistleblower complaints, Burt said this is “not only bad corporate governance, it is illegal.”
Specifically, the SEC said Activision Blizzard violated Exchange Act Rules 13a-15(a) and 21F-17(a). Again, Activision Blizzard is not admitting or denying the SEC’s charges, but is agreeing to the settlement to put an end to the case.
The SEC’s order stated that the settlement payment pertains to disclosure controls and Activision Blizzard’s separation agreements.
Activision Blizzard said in a statement to GameSpot that the company is “pleased to have amicably resolved this matter.”
“We have enhanced our disclosure processes with regard to workplace reporting and updated our separation contract language. We did so as part of our continuing commitment to operational excellence and transparency. Activision Blizzard is confident in its workplace disclosures,” the company said.
Activision Blizzard has faced a wave of criticism in recent years over a variety of workplace issues. For more, check out a timeline of all the major lawsuits and issues.
This is happening as Microsoft attempts to purchase Activision Blizzard for $68.7 billion. The proposed buyout has faced pressure and scrutiny, as well as a lawsuit in the US from the FTC.
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