Video Game Giant Activision Blizzard Settles with SEC Over Workplace Misconduct Charges
The popular video gaming company Activision Blizzard, known for its great titles such as Call of Duty and World of Warcraft, has recently settled a federal charge bought against it by the securities and exchange commission (SEC). The charges range from the company’s suspected failure to correctly address complaints of workplace misconduct and its violation of federal whistleblower protections.
The SEC found that Activision Blizzard’s management failed to understand the scope of employee complaints about workplace misconduct. This was because of a lack of proper controls in place. Because of that, it prevented the company from reviewing whether these complaints comprised material issues that would have needed public disclosure. The SEC also found that the company has made past employees notify them if they received any SEC request for information. This is a violation of federal whistleblower protections.
Sec Investigation against Activision Blizzard
Multiple controversies have been surrounding Activision Blizzard since 2021. A state agency filed a sexual harassment lawsuit against the company. They accuse its leadership of failing to take action and explaining its corporate culture as a “frat boy culture”. This encouraged the SEC to open its own investigation into how the company handled reports of workplace misconduct.
Activision Blizzard has agreed to a cease-and-desist order and to pay a $35 million penalty to settle the lawsuit with the SEC. The company also did not admit or deny any of the SEC’s findings. They simply stated that they are pleased to have solved the problem and had improved their disclosure processes.
What does this mean for the $69 Microsoft deal?
Regardless of the settlement, the proposed acquisition of Activision Blizzard by Microsoft for $69 billion is still going through regulatory review before the transaction can be finalized. The result of these reviews will decide if the deal will be allowed or not. However, if the deal does go through it will be one of the largest technology acquisitions in history. The deal would have a big impact on the video gaming industry and will also give Microsoft more influence over the industry.
The future of the workplace environment at Activision Blizzard
The allegations of workplace misconduct at Activision Blizzard emphasize the importance of proper workplace policies and procedures. Companies must take these allegations seriously and take appropriate steps to address them. It is a great way to maintain a positive work environment for the sake of their employees and to fulfill their obligations to shareholders and the public.
The settlement with the SEC is a reminder to companies of the importance of adhering to workplace regulations. Maintaining an ethical work environment is key to success in the workplace. The company has agreed to pay a substantial penalty and improve its disclosure processes. However, the reputational damage cannot be easily undone. But look at the bright side, at least the U.S. government is not out to get them like Huawei. Check out our latest article about the tech giant Huawei which is currently under sanctions from the U.S. government for its close tie to the Chinese government.
