SEC to expand investigation into Activision Blizzard’s misconduct

Federal investigators have expanded their probe into how Activision Blizzard’s leadership handled allegations of wrongdoing at the company, The Wall Street Journal reported. The Wall Street Journal reported that the SEC has subpoenaed multiple company directors to find out more about the company’s response to workplace concerns.

In addition, the California Department of Fair Employment and Housing, which filed a lawsuit against the publisher last year, has now subpoenaed multiple police departments in Los Angeles for any records related to Bobby Kotick and 18 other current and former employees.

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The most recent subpoena to Activision employees was dated January 18 — the same day Microsoft announced its intention to buy the publisher for $68.7 billion. The LAPD’s subpoena is dated January 20.

The Wall Street Journal reported that the DFEH’s subpoena for police records was prompted by information in “public reports,” but gave no further details.

Activision has responded to the SEC’s police investigation; spokesman Helaine Kraski said the subpoenas were an “extraordinary fishing expedition,” adding that the subpoenas “are for harassment, annoyance, and embarrassment, and Not for any legitimate purpose.”

Last September, the SEC opened an investigation into the company to determine whether it should inform investors of the misconduct investigation it faced at the time. The first of these investigations came to light as part of a lawsuit filed last July by the California Department of Fair Employment and Housing.

In January, the Communications Workers Alliance of America called on the SEC to investigate Activision Blizzard’s disclosure of “inaccurate and misleading” information. Previously, the company told the SEC it was not aware of any strikes or ongoing legal action, despite a simultaneous strike by Activision studio Raven Software.

Update/Correction: This article originally misreported both subpoenas as coming from the SEC. It has been modified. Additionally, Activision Blizzard commented on DFEH’s actions, stating: “DFEH is soliciting sensitive, classified information from the Southern California Police Department with no restrictions or relevant scope.

This serves no legitimate purpose. It represents yet another sabotage effort by DFEH. Viewed on Blizzard’s dubious tactics in the settlement with the EEOC.”

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