A U.S. federal court judge approved Activision Blizzard to pay an $18 million settlement for a sexual harassment lawsuit brought by the U.S. Equal Employment Opportunity Commission (EEOC) last year.
While a judge agreed that Activision Blizzard would pay $18 million to settle a federal lawsuit accusing the company of fostering sexist and discriminatory workplaces, critics said the figure was too low.
The U.S. Equal Employment Opportunity Commission filed a lawsuit in court in September last year. On the same afternoon, Activision Blizzard expressed its willingness to set up an $18 million fund to compensate employees who suffered sexual harassment and gender discrimination in the studio.
The fund will be distributed to people who have worked at Activision Blizzard from September 1, 2016, to the present. Eligible current and former employees may file claims for sexual harassment, retaliation, or pregnancy discrimination and will then be considered for relief.
It’s worth noting that today’s ruling does not mark the end of Activision Blizzard’s legal troubles after the California Department of Fair Employment and Housing (DFEH) slapped Activision Blizzard offices for sexism, gender-based harassment and “fraternity”. Culture” allegations were under investigation for two years, and today’s $18 million rulings applies only to a federal case brought by the Equal Employment Opportunity Commission, a state-level lawsuit still ongoing.
Anyone who signs off as a claimant in an Equal Employment Opportunity Commission lawsuit is ineligible to participate in the state’s case, at least when it comes to harassment, retaliation, or pregnancy discrimination. If they have additional claims, such as unequal pay, they can bring those claims to the DFEH lawsuit.
While the Equal Employment Opportunity Commission settlement is the second-largest the agency has ever made, it has its critics, including DFEH. The DFEH sued Activision Blizzard in July 2021 for failing to address sexual harassment and discrimination against female employees, ahead of the Equal Employment Opportunity Commission lawsuit last September.