Activision Blizzard has agreed to pay a sum of $35 million to settle allegations made by the US government regarding the violation of a whistleblower protection rule and the lack of proper processes for collecting complaints regarding workplace misconduct.
The announcement of the settlement, which was made on Friday, is a setback for the video game company that has been facing widespread criticism and numerous allegations of sexual harassment, retaliation, and other workplace misconduct in the workplace.
According to the Securities and Exchange Commission (SEC), the absence of proper procedures for understanding and documenting misconduct complaints prevented Activision Blizzard from determining whether it was necessary to disclose these issues to investors.
Additionally, the SEC alleged that between 2016 and 2021, the company included an illegal clause in its employee separation agreements that required employees to inform the company if the SEC started asking them questions.
It’s important to note that the settlement with the SEC does not constitute an admission of fault by the company. In a statement, Activision Blizzard expressed its satisfaction with having resolved the government investigation. The company is also currently at the center of a highly scrutinized $69 billion acquisition deal by Microsoft.