U.S. District Judge Dale Fischer said of the settlement during the March 29 virtual Zoom hearing that she could not stop anyone from appealing but her intention is to sign the agreement.
“I’m going to sign the consent decree that will close this case,” Fischer told a DFEH representative on the conference call, who first sued Activision Blizzard and asked that it delay approving the settlement. “You have already submitted an application. Your request is late. Talk to the 9th circle.”
The story continues below the ad
Anyone who has worked at Activision Blizzard between September 1, 2016 and now may file a complaint, including but not limited to sexual harassment, retaliation, or discrimination based on pregnancy. The EEOC Settlement is opt-in only, so applicants must submit documentation to be considered for an appeal.
Those who choose to become part of the EEOC Settlement are waiving their right to participate in the California State Department’s lawsuit on specific issues of molestation, retaliation or discrimination based on pregnancy. If they have other claims — such as wage inequality that are not covered by EEOC’s agreement with Activision Blizzard — those former or current Activision Blizzard employees can still proceed with the State of California’s lawsuit. The case of each individual depends on their experience in the company.
“You can’t dive twice. That’s the reality of these settlements,” said Anna Park, Regional Attorney for the Los Angeles County of the EEOC. “There has been a lot of confusion about that. … We want to encourage everyone to make a very informed decision.”
The story continues below the ad
In a press release following Tuesday’s settlement, Activision Blizzard CEO Bobby Kotick said the company’s goal is “to become a model for the industry, and we will remain focused on eliminating harassment and discrimination in our workplace.” The court’s approval of this settlement is an important step in ensuring that our employees have a remedy if they experience any form of harassment or retaliation.”
After the settlement, EEOC spokeswoman Nicole St. Germain said the committee was pleased with the outcome.
Two women who previously worked for Activision Blizzard but left the company told the Post they would be running as plaintiffs in the EEOC case because they wanted the company to be held accountable.
The story continues below the ad
“I only want one solution for myself. I want something to happen,” said a former Activision Blizzard employee from Texas, who said she faced sexual harassment, discrimination and sexism during her time at the company. “I don’t want it to drag on any longer. I think that’s the most important thing at this point because I think people need to see that it has an ending and an outcome.
The EEOC, a federal agency, and the DFEH, a state agency, share jurisdiction over workplace sexual harassment cases, and both agencies received anonymous tips investigating Activision Blizzard in 2018. The two agencies had a disagreement over how much victims should be paid under the settlement, and feared that a federal settlement between the EEOC and Activision Blizzard could prevent DFEH from pursuing further state-level claims for damages. Final approval of the September settlement was pushed back to March due to constant back-and-forth between authorities.
The story continues below the ad
“DFEH will continue to vigorously pursue its lawsuit against Activision in California state court,” DFEH spokesman Fahizah Alim said in a statement last week. “In recent weeks, DFEH has denied Activision’s motion that the court dismiss DFEH’s case, and DFEH has for many years sought documents and other evidence of sexual harassment, discrimination and retaliation violations by Activision. The court has set a hearing date of February 2023.”
In addition to the DFEH, critics of the EEOC agreement include a significant number of Activision Blizzard employees and their allies, the Communications Workers of America (CWA). They believe the $18 million figure is insufficient for potentially hundreds or more victims. In an Oct. 6 letter to EEOC, the CWA called $18 million “feeling insufficient” and said Activision Blizzard employees and the CWA had “serious concerns” about the settlement agreement. EEOC’s attorneys say $18 million is still a significant sum of money and that thousands of claimants are unlikely to split the funds because the majority of Activision Blizzard’s 10,000 employees are male. The $18 million settlement with EEOC is the second largest sexual harassment-related settlement the agency has ever negotiated.
“We definitely believe that $18 million is more than adequate,” Elena Baca, a partner at the law firm Paul Hastings and counsel to Activision Blizzard on the EEOC lawsuit, told The Post. “When you look at other settlements, sometimes people think, ‘Well, everyone who’s employed has to be paid.’ But that is not the case here. … To the extent that there are people who have legitimate concerns and claims, they want the EEOC to make an assessment.”
The story continues below the ad
Last December, Riot Games announced it would settle a $100 million class action lawsuit filed in 2018 involving California state agencies and current and former female employees alleging gender discrimination. This lawsuit was used as a point of settlement in court filings regarding the proposed settlement between Activision Blizzard and EEOC.
“I know the focus has always been on money, but it’s not just about the money and it can’t be about the money,” Park said. “As a law enforcement agency, it has to be how you move forward and get the company compliant because that affects a lot of people’s daily lives.”
Fr. Andrew Torrez, who owns a law firm and hosts the Opening Arguments podcast covered the Activision Blizzard suitsaid last week the judge’s ruling is a victory for Activision Blizzard and could help defuse DFEH’s lawsuit.
The story continues below the ad
“It’s a clear win for the Activision Blizzard company. You are losing a small amount and effectively undermining state court processes where the state agency has been far more aggressive,” Torrez said, referring to the DFEH lawsuit. Activision reported revenue of $2.16 billion for the quarter ended December and totaled $8.8 billion in 2021.
Baca, Activision’s legal counsel, said it was “fair to characterize the settlement as a win for the company.”
“I actually think it’s more of a win for people who have entitlements,” Baca said. “This idea of waiting for different lawsuits — who knows what’s going to happen with this lawsuit? People could always make their claims, they will never stop, they could file for arbitration, they can file a lawsuit, they can file whatever they see fit… This actually brings finality and a process to people that isn’t found elsewhere is available.”
The story continues below the ad
In addition to the $18 million to be paid to the plaintiffs, Activision Blizzard must also establish corporate harassment and discrimination prevention programs, which will be reviewed by the EEOC. Remaining funds can go to charities to promote women in gaming or raise awareness of gender equality issues, the company announced in a press release to investors last September. Activision is required by law to deposit funds into an escrow account within 30 days.
As part of the agreement with the EEOC, and in addition to the $18 million, Activision must expand mental health counseling services and add a new staff evaluation process that allows employees to provide feedback on their managers. An independent equal opportunity expert, hired by the company, will report to the EEOC. The company must also provide mandatory live and interactive training on sexual harassment.
The agreement is to be valid for three years. If Activision fails to do so, the EEOC may seek any form of remedy, including financial or, in extreme cases, sanctions. EEOC lawyers say they could seek an extension if compliance falls short of standards.
“I have a college daughter and another daughter who are just out of high school and entering the workforce,” Park said. “And you never want their first employment experience to be one where they are harassed. We try to create and improve a working environment. It is our job to serve that public interest.”