Activision harassment lawsuit settled for less than 1% of 2021 revenue

California district court judge Dale Fischer approves of Activision-Blizzard's $18 million sexual harassment settlement proposal.

1 minute & 47 seconds read time

Activision-Blizzard will settle its sexual harassment lawsuit for just $18 million, a paltry sum compared to how much money the company makes a year.

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After months of back and forth between state DFEH and federal EEOC agencies, Judge Dale S. Fischer of the United States District Court for the Central District of California has approved Activision-Blizzard's $18 million settlement proposal for its recent discrimination lawsuit.

The settlement would see Activision creating a $18 million victim's fund that could be dispersed across those affected by sexual harassment or abuse as detailed in the US Equal Employment Opportunity Commission's lawsuit.

Both the Equal Employment Opportunity Commission (federal) and California's Department of Fair Employment and Housing (state) have filed lawsuits against Activision-Blizzard, however the billion-dollar company has only set a settlement proposal for the EEOC case. The EEOC and the DFEH were originally working together on sexual harassment and discrimination investigations on Activision-Blizzard, but splintered off into two separate lawsuits.

Judge Fischer has approved Activision-Blizzard's $18 million settlement terms, but the DFEH is resistant, saying that the EEOC settlement will directly interfere with its lawsuit and prevent the federal agency from suing for similar accusations.

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It's worth noting that $18 million is a low sum compared to the billions that Activision-Blizzard makes every year. In 2021, the company generated a record-breaking $8.8 billion in revenues and paid CEO Bobby Kotick a $150 million performance bonus.

The victim's settlement fund is less than 1% of Activision-Blizzard's entire earnings for 2021.

As part of the agreement with the EEOC, Activision agreed to:

  • Create an $18 million fund to compensate eligible claimants.
  • Continue enhancing policies, practices, and training to prevent harassment and discrimination in the workplace, including by implementing an expanded performance-review system. These improvements are underway.
  • Engage a neutral, third-party equal employment opportunity consultant - a non-employee who must be approved by the EEOC - who will provide ongoing oversight of the Company's compliance with the agreement. This independent consultant's findings will be reported directly to the EEOC and Activision Blizzard's Board of Directors.
  • Hire an internal EEO coordinator with relevant experience in gender discrimination, harassment, and related retaliation to assist the Company. Stacy Jackson began this position on March 16.

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Derek joined the TweakTown team in 2015 and has since reviewed and played 1000s of hours of new games. Derek is absorbed with the intersection of technology and gaming, and is always looking forward to new advancements. With over six years in games journalism under his belt, Derek aims to further engage the gaming sector while taking a peek under the tech that powers it. He hopes to one day explore the stars in No Man's Sky with the magic of VR.

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