Video game company Activision Blizzard has agreed to pay nearly $55 million to settle a 2021 complaint by the California Civil Rights Department.
The majority of the monetary settlement is accounted for by the establishment of a roughly $47 million fund for the treatment of pay disparity and discrimination accusations related to promotions for female workers. The balance will go toward refunding the state’s legal expenses.
The initial complaint alleged that the company had allowed a “frat boy” culture to develop, with women experiencing numerous instances of sexual harassment and abuse. The settlement pertains to an amended version of the complaint, in which the state agreed to drop that aspect, narrowing the focus to pay disparity.
Microsoft acquired Activision Blizzard for $68.3 billion in a headline-making deal that closed in October.
Women who were employees or contract workers at Activision Blizzard in California between October 12, 2015 and December 31, 2020 are eligible for monetary relief under the terms of the settlement agreement.
“California remains deeply committed to promoting and enforcing the civil rights of women in the workplace,” CRD Director Kevin Kish said in a press release. “If approved by the court, this settlement agreement represents a major step forward and will bring direct relief to Activision Blizzard workers. At the California Civil Rights Department, we will continue to do our part to fight for the rights of our state’s residents.”
Activision Blizzard, known for games like Call of Duty, is not the only video game maker to face scrutiny over the experiences of female employees. Riot Games, publisher of League of Legends, agreed to pay $100 million earlier this year to settle a 2018 class-action lawsuit over gender-based discrimination.
