Editor’s Note: A lawsuit has been filed against Activision Blizzard by the California Department of Fair Employment and Housing, which alleges the company has engaged in abuse, discrimination, and retaliation against its female employees. Activision Blizzard has denied the allegations. The full details of the Activision Blizzard lawsuit (content warning: rape, suicide, abuse, harassment) are being updated as new information becomes available.
A report reveals game publisher Activision Blizzard is being investigated by the SEC and that CEO Bobby Kotick and other executives have been subpoenaed. The federal agency is reportedly looking into how sexual misconduct and workplace discrimination allegations at the company. The SEC is a federal government agency largely used to enforce the law against market manipulation, so its involvement would seemingly be an escalation following a July lawsuit filed against Activision by the California DFEH.
The State of California is suing Activision for a number of issues relating to employee treatment, with allegations of gender discrimination and harassment being leveled against company leadership. Activision has also separately been accused of unfair labor practices, but these matters have been respectively confined to state and private affairs until now. However, it appears the federal government could now be getting involved.
According to the Wall Street Journal (via Bloomberg's Jason Schreier), the US Securities and Exchange Commission is investigating Activision Blizzard over toxic work culture claims and the company's handling of sexual misconduct and workplace discrimination allegations. The SEC has subpoenaed CEO Bobby Kotick and other executives, requesting information on Kotick's exchanges with other senior executives regarding complaints of workplace misconduct and documents pertaining to Activision board meetings since 2019.
Update (9/21/2021 9:45 AM EDT): Activision Blizzard has confirmed that an SEC investigation of the company is ongoing and that "current and former employees" have been subpoenaed over "employment matters and other issues." An official statement reads:
"Activision Blizzard, Inc. (Nasdaq: ATVI) said today that it continues to work with regulators on addressing and resolving workplace complaints it has received. The Company also provided an update on recent initiatives to achieve its goal of ensuring a workplace that is inspiring, equitable, and respectful to all.
Bobby Kotick, Chief Executive Officer of Activision Blizzard, said, “We are deeply committed to making Activision Blizzard one of the best, most inclusive places to work anywhere. There is absolutely no place anywhere in our Company for discrimination, harassment, or unequal treatment of any kind. While we continue to work in good faith with regulators to address and resolve past workplace issues, we also continue to move ahead with our own initiatives to ensure that we are the very best place to work. We remain committed to addressing all workplace issues in a forthright and prompt manner.”
Kotick also said that the Company continues to productively engage with regulators, including the U.S. Equal Employment Opportunity Commission (EEOC), the National Labor Relations Board (NLRB), and the California Department of Fair Employment and Housing (DFEH) with the goal of improving its workplace policies and procedures and ensuring compliance.
The Company is actively engaged in continued discussions with the EEOC and has cooperated with the EEOC’s investigation concerning certain employment practices. It also confirmed that it is complying with a recent U.S. Securities and Exchange Commission (SEC) subpoena issued to the Company and several current and former employees and executives regarding disclosures on employment matters and related issues. The Company is confident in its prior disclosures and is cooperating with the SEC’s investigation.
Activision Blizzard has made a number of important improvements including significant changes to personnel, exiting a number of employees, and expanding compliance resources. In addition, the Company has refreshed its HR organization and, this week, will welcome a new Chief People Officer, Julie Hodges, who joins the Company from The Walt Disney Company. The Company has also expanded training, performance management, and anti-harassment resources.
The Company remains committed to ensuring it is the most welcoming, inclusive game company and connecting and engaging its 400 million players through epic entertainment created by the very best people in the industry."
Activision Blizzard leadership has largely avoided speaking publicly about the legal troubles the company is facing at this time, but CEO Bobby Kotick did issue a statement after a series of open letters condemned the company's behavior. Along with promising several internal changes, he announced the hiring of law firm WilmerHale as a third-party auditor of the publisher, a decision cited in a new lawsuit filed against Activision Blizzard over alleged unfair labor practices.
In August, Activision removed its logo from Call of Duty: Vanguard's alpha and initial marketing rollout, but Activision later restored its logo for Vanguard's beta trailer. It's unclear why the company chose to distance itself from marketing initially but is now putting its logo back on the game, especially as its legal situation could be growing more severe. There's little telling how long an SEC investigation would take or what outcome one could have, but it seems probable that more information will surface soon.
Source: The Wall Street Journal (via Jason Schreier/Twitter)