Activision Blizzard Board Finds No Evidence That Harassment Was Ignored

Activision Blizzard Board Finds “No Evidence” That Harassment Was Ignored or Downplayed

After conducting its own internal investigation, Activision Blizzard’s board of directors claims it found “no evidence” to indicate that its executives and its own members ignored or downplayed gender-based harassment. It is also asking its shareholders to vote against a forthcoming proposal to produce a report on its own abuse and harassment prevention efforts.

In a new SEC filing, Activision Blizzard claimed:

“[T]The Board of Directors and its external advisors have determined that there is no evidence that Activision Blizzard officers have ever intentionally ignored or attempted to downplay the instances of gender-based harassment that have occurred and been reported. Nor has this work uncovered any direct or indirect evidence that would indicate an attempt by any officer or employee to withhold information from the Board of Directors. External consultants, after a thorough review, also concluded that the Board has never intentionally ignored or attempted to downplay the instances of gender-based harassment that have occurred and been reported.”

The state of California’s first lawsuit, filed after a two-year investigation, alleges that management was aware of and failed to prevent numerous internal cultural issues. Subsequent reports and court cases also included allegations that incidents were reported and either ignored or brushed aside, with little meaningful consequence for the perpetrators. After the initial allegations, over 20 employees were fired and over 20 others otherwise fined by the following October.

Activision Blizzard Lawsuit Timeline: The Story So Far

Activision Blizzard und seine derzeitigen und ehemaligen Mitarbeiter sind mitten in der Auseinandersetzung mit den Folgen einer Klage des kalifornischen Ministeriums für faire Beschäftigung und Wohnungswesen, in der behauptet wird, das Unternehmen habe a gefördert "frat boy" Culture where female employees faced sexual harassment, unequal pay and more.</br></br>  Since the lawsuit was filed on July 20th, action has been taken, sources have shared their stories, Blizzard CEO J. Allen Brack has resigned, and more.  It can be difficult to keep track of everything that’s happened so far, so we’ve created this timeline of events that will help you keep track of everything to prevent these horrible problems from ever happening again .” src=”https://assets-prd.ignimgs.com/2021/08/03/activisionblizzardlawsuittimeline-slideshow1-1628007724562.jpg?width=888&crop=16%3A9&quality=20&dpr=0.05″ class=”jsx-2920405963 progressive -image image jsx-294430442 rounded expand loading”/></p><p>Specifically, Activision Blizzard’s panel response focuses specifically on harassment that “occurred and was reported,” as defined by the company.</p><h2>Blanket allegations against Activision Blizzard</h2><p>The internal investigation in question was first announced in November following a California lawsuit and a widespread spate of allegations of abuse, harassment and gender inequality at the company.  Among them was the accusation that CEO Bobby Kotick knew about many problems in the company but did nothing.  Activision Blizzard’s board of directors backed Kotick in a statement at the time, saying they were “confident that Bobby Kotick has appropriately addressed the workplace issues brought to his attention.”</p><p>As the allegations mounted, the board established a Workplace Responsibility Committee to conduct its own internal investigation into the allegations.  The committee was chaired by Activision independent director Dawn Ostroff, and Reveta Bowers, a colleague of the independent director, also joined the committee.  In April, five months after the investigation was announced, Lulu Cheng Meservey was elected to the board and joined the committee.</p><p>The committee’s investigative work is said to have included reviewing “individual cases of harassment” and company policies and procedures, reviewing source documents such as employee emails and interviews, and conducting its own interviews with current and former employees.</p><p>The committee claims to have worked with “the support of outside consultants” including law firms and “experts on workplace issues” to reach these conclusions, but only named one specific outside consultant in its report: Gilbert Casellas.  Casellas is a past chair of the Equal Employment Opportunity Commission, and his role in the inquiry reportedly included reviewing data from researched reports of gender-based harassment from across the US between 2016 and 2021, according to Activision Blizzard.</p><p>Casellas concluded that “there was no widespread harassment, pattern or practice of harassment, or systemic harassment at Activision Blizzard or any of its business units during this period.  The amount of misconduct reported is comparatively small for a company the size of Activision Blizzard.”</p><p>[T]The Board of Directors and its external advisors have determined that there is no evidence that Activision Blizzard officers have ever intentionally ignored or attempted to downplay the instances of gender-based harassment that have occurred and been reported.</p><p>“</p><p>No further details were offered as to what specific elements of Activision Blizzard Casellas’ workplace culture offered to consider as points of comparison in order to reach this conclusion.  IGN has reached out to Activision Blizzard to clarify who else was involved in this committee and what Casellas’ input was, and will update this article if a response is received.</p><p>Activision Blizzard’s conclusions about itself come ahead of an upcoming shareholders’ meeting at which a number of measures will be voted on, including a shareholder proposal to produce a report on its efforts to prevent abuse, harassment and discrimination.  Activision Blizzard actively encourages its shareholders to vote against the production of such a report.</p><p>It also keeps shareholders from voting against a proposal to add a director nominee to the board, which would be chosen by Activision Blizzard’s non-management employees.  The latter proposal was, among other things, described as “particularly beneficial given the recent allegations of sexual misconduct at the company.  Activision CEO Bobby Kotick has reportedly known about allegations of sexual assault at the company for years but did not notify the board.”</p><p>Finally, the company is encouraging shareholders to vote to approve its executive compensation package, which includes returning Kotick to his $875,000 annual salary after he reduced it to $62,500 last October while his resignation is due of the allegations against him and the company.  Kotick’s actual pay is typically significantly higher due to stocks and numerous other bonuses and awards, although he has waived several of these over the past year due to work culture allegations and repeated criticism of his compensation package.  Kotick is eligible for multimillion-dollar awards as early as July 18 if the board determines he has made sufficient progress in improving the company’s culture.</p><p>Rebekah Valentine is a news reporter for IGN.  You can find her on Twitter <a href=@duckvalentine.