Activision Blizzard has settled a $54 million workplace discrimination lawsuit with California

Activision Blizzard, the video game company that produces Call of Duty and World of Warcraft, among other games, has settled a $54 million workplace discrimination lawsuit with the state of California.

The settlement resolves allegations that the company “discriminated against women in the company, including denying them promotional opportunities and paying them less than men for substantially similar work.” Civil rights in california The ministry announced late Friday.

Under the agreement, which is subject to court approval, women who worked at Activision Blizzard between October 12, 2015 and December 31, 2020, may be eligible for compensation. About $45.75 million of the settlement amount has been set aside for such payments, the government agency said.

In this illustration, the Microsoft and Activision Blizzard logos appear on a smartphone and the FTC logo on a computer screen. (Pavlo Gonchar/SOPA Images/LightRocket via Getty Images/Getty Images)

Activision Blizzard also agreed to take steps to ensure “fair pay and promotion practices” at the company.

“We appreciate the importance of the issues addressed in this agreement and are committed to fully implementing all of the new commitments we have made as part of it,” Activision Blizzard said on Saturday.

FTC ties in again to block Microsoft’s acquisition of Activision

The company also noted that the California Department of Civil Rights agreed to file an amended complaint withdrawing the sexual harassment allegations.

The California civil rights agency sued Santa Monica-based Activision Blizzard in July 2021, alleging that female employees faced ongoing sexual harassment, that few women were hired into leadership roles, and that when they were, they received lower salary, incentives and overall compensation. Of males. Peers.

The allegations helped drive down Activision’s stock price in 2021, paving the way for Microsoft’s eventual takeover bid in January 2022. The software giant, which owns the Xbox gaming system, closed its $69 billion deal to buy Activision in October after facing global opposition from anti-government regulators. Monopoly and competitors.

Click here to get the FOX Business app

The settlement agreement states that “no allegations have been substantiated by any court or independent investigation” of systematic or widespread sexual harassment at Activision Blizzard, and does not allege that the company’s board of directors and CEO acted inappropriately or ignored or tolerated a culture of harassment, retaliation, or discrimination. .

The Associated Press contributed to this report.