Activision Blizzard Officers and Directors Under Investigation for Possible False Statements and Discrimination
Schubert Jonckheer & Kolbe LLP is investigating potential derivative claims on behalf of shareholders of Activision Blizzard, Inc. (NASDAQ: ATVI) relating to possible false statements to investors regarding its “frat boy” workplace culture and a long-running investigation by the California Department of Fair Employment and Housing (“DFEH”).
On July 20, 2021, DFEH sued Activision in Los Angeles County Superior Court for violations of California’s Equal Pay Act and the Fair Employment and Housing Act related to allegations that, among other things, the company paid women less than their male counterparts for substantially similar work, subjected women to a culture of “constant” sexual harassment, failed to take reasonable steps to prevent such harassment, and even retaliated against those who complained about it. DFEH described the company’s culture as that of a fraternity and claimed that it created a “breeding ground for harassment and discrimination against women.” The DFEH investigation took place over a period of more than two years, and the agency noted that the company received “numerous” complaints by female employees related to their treatment under Activision’s male-dominated corporate culture. Following DFEH’s lawsuit, Blizzard President J. Allen Brack resigned from his position at the company.
On August 23, 2021, DFEH amended its complaint against Activision to allege several efforts by the company to impede the department’s investigation, including by withholding and even destroying certain documents related to worker complaints. DFEH also expanded its claims to cover Activision’s contingent and temporary workers in addition to female employees.
The Schubert Firm is investigating potential breaches of fiduciary duty by the company’s officers and directors in connection with these allegations.
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