Activision Blizzard settles discrimination lawsuit for $55M, but evades sexual harassment claims

polygon.com:

California’s Civil Rights Department has reached a settlement with Activision Blizzard that will see the company pay tens of millions of dollars in damages to women for unfair pay and treatment — but, as part of the settlement, the CRD has dismissed its own allegations of a “frat boy” culture of widespread and systemic sexual harassment at the company.

According to the CRD’s news release, Activision Blizzard will pay almost $55 million in damages to settle the suit, of which $45.75 million will be used to directly compensate women who were denied promotion opportunities, paid less than men for similar work, or otherwise discriminated against at the company. The remainder will cover legal costs, with any excess going to relevant charities.

Activision Blizzard — which, since the lawsuit was filed in July 2021, has been acquired by Microsoft — will also be required to retain an independent consultant to review its compensation and promotion policies, and to “continue its efforts” to improve representation in its workforce.

Related

But the settlement — which still has to be approved by a court — has also required the CRD to make a major climbdown. Its suit made alarming claims about a “pervasive ‘frat boy’ workplace culture” at Activision Blizzard and “constant sexual harassment” of female employees there. The allegations were the focus of media coverage at the time and prompted a reckoning within the company — resulting in the departure of many senior staffers — and in the wider industry. The CRD has now withdrawn these claims.

“No court or any independent investigation has substantiated any allegations that there has been systemic or widespread sexual harassment at Activision Blizzard,” the text of the agreement reads.