Activision Blizzard will settle state workplace discrimination allegations in California by paying $54 million

Activision Blizzard will pay $54 million to settle California's civil rights agency's discrimination accusations against its female employees.

The California Civil Rights Department announced late Friday that the creator of Call of Duty, Overwatch, World of Warcraft, and other video games discriminated against women at the company, including denying promotion opportunities and paying them less than men for substantially similar work? The settlement, which requires court approval, resolves allegations.

Workplace discrimination allegations lowered Activision's stock price in 2021, setting the path for Microsoft's January 2022 takeover attempt. After fighting antitrust regulators and rivals worldwide, Microsoft's $69 billion acquisition of Activision was completed in October.

California's civil rights agency sued Santa Monica-based Activision Blizzard in July 2021, alleging that women were sexually harassed, few were named to leadership roles, and when they were, they earned less salary, incentive pay, and total compensation than men.

Employees protested harassment and discrimination by signing petitions and walking out due to the company's defensive response to the case.

The settlement may compensate women who worked at the company as hires or independent contractors between Oct. 12, 2015, and Dec. 31, 2020. The deal includes $45.75 million for such payouts, the state agency said.

Blizzard also pledged to implement “fair pay and promotion practices”.

"We appreciate the importance of the issues addressed in this agreement and we are dedicated to fully implementing all the new obligations we have assumed as part of it," Activision Blizzard stated Saturday.