Activision Blizzard is now facing a federal investigation, The Wall Street Journal reported on Monday, Understand how the company handles allegations of discrimination, sexual harassment and sexual misconduct by employees in the workplace. Since California authorities filed a lawsuit in July to prosecute similar claims, the company’s working environment has been facing public scrutiny.
According to the “Wall Street Journal” report, the US Securities and Exchange Commission has subpoenaed Activision CEO Bobby Kotick (Bobby Kotick) and several other senior executives. The newspaper quoted a source familiar with the investigation as saying that it had reviewed documents related to the case.
An Activision spokesperson acknowledged the SEC’s investigation and told the Wall Street Journal that the regulator is reviewing “the company’s disclosures on employment matters and related issues.” An Activision representative said that the company is cooperating with the US Securities and Exchange Commission.
On July 20, the California Department of Fair Employment and Housing filed a civil lawsuit against Activision Blizzard, accusing the company of tolerating gender-based discrimination, sexual harassment, and “fraternity” workplace culture, mainly in its Blizzard Entertainment Division in Irvine , California. Blizzard is known for its “Overwatch”, “Diablo” and “World of Warcraft” series. The parent company Activision also issued a Call of Duty.
The California DFEH lawsuit was filed after a two-year investigation. The complaint alleges that Activision Blizzard knew about and contributed to misconduct in the workplace. One of them, Blizzard Entertainment president J. Allen Brack, stepped down two weeks later.
On the same day Brack resigned, an Activision Blizzard shareholder filed a lawsuit against the company, alleging negligent supervision and false statements to investors that caused the company’s stock price to fall sharply.
Similarly, the US Securities and Exchange Commission’s investigation is reviewing how Activision Blizzard handles harassment and discrimination, “and whether any of this information should be shared with investors and other parties earlier,” the Wall Street Journal reported.