Activision Blizzard provides update on workplace initiatives as US government opens investigation

Keshav Bhat

The fallout on Activision Blizzard over the initial revelations of workplace harassment at the company continues as the company is now facing new legal challenges from U.S government agencies.

The Wall Street Journal (WSJ) has issued a report stating that the SEC, the Securities and Exchange Committee, opened an investigation into Activision Blizzard recently over the workplace harassment and pay inequality issues.

The SEC has also subpoenaed Activision Blizzard CEO Bobby Kotick to appear in court, along with several other Activision Blizzard senior executives. Specific names beyond Kotick were not shared.

The SEC is investigating whether Activision Blizzard’s failure to provide proper information in regards to the harassment and inequality situation prior to it becoming public via the California state lawsuit on July 21, 2021 caused investors to lose money over a drop in the company’s stock prices.

The WSJ states that, per documents and files they’ve reviewed, the SEC is asking for information dating back to 2019.

The agency is specifically inquiring about the communications of senior executives over the harassment and diversity situation and what decisions were made at that time.

Activision Blizzard’s Chief Communications Officer, Helaine Klasky, confirmed to WSJ that the SEC is investigating the company and confirmed they are cooperating with the SEC.

In addition to the SEC, the WSJ reports that the Equal Employment Opportunity Commission has been investigating Activision Blizzard separately since May 2020 over workplace misconduct and discrimination.

Per reports, Activision Blizzard and the agency are in talks over a settlement agreement which would see the company pay millions of dollars in fines.

Activision Blizzard has been under fire since the California DEFH lawsuit came to light on July 21, 2021.

Employees of the company formed a group, known as A Better ABK, to list their demands and how they want to proceed forward with the company, following a company wide walkout in July. So far, the company’s executives have not met their demands.

Activision Blizzard provides update

Since these new investigations have come to light, Activision Blizzard has issued a statement revealing some progress that the company claims to have made over the last two months.

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.”

Activision Blizzard confirmed investigations are underway by the SEC and the EEOC, which were reported by the WSJ. The company says that they are “cooperating” with the investigations.

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.

In addition, Activision Blizzard states that they have made several changes to the company and the company’s culture. They state that there have been many exits from the company and have “refreshed” their HR team.

Activision Blizzard recently announced the hiring of Julie Hodges as their new Chief People Officer, who will be responsible for HR. Hodges begins her role on Sept. 21. She replaces the current head of HR, who has left the company.

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.

We’ll continue to provide updates on the situation with Activision Blizzard.

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About The Author

Keshav Bhat is the Co-Founder of CharlieIntel.com, the world's largest Call of Duty news site. Based in Atlanta, Keshav also serves as the Head of Social Media for Dexerto network, running a network of over 10 million social followers. Keshav can be contacted for tips at [email protected]