Activision Blizzard Settles Gender Discrimination Lawsuit with California for $54 Million

In a landmark resolution, video game giant Activision Blizzard and the California Civil Rights Department (CRD) have reached a settlement in a gender discrimination lawsuit, amounting to approximately $54 million. This settlement ranks as the second-largest negotiated by the CRD, underscoring the gravity of the allegations.

The lawsuit, filed two years ago, accused Activision Blizzard of pervasive gender and pay disparities, prompting an extensive investigation by the CRD. The company was initially targeted for a much higher payout, but negotiations culminated in the agreed-upon sum. Notably, Activision Blizzard has made strides in fostering an inclusive environment, including the appointment of its first dedicated chief diversity officer last year.

The settlement, pending court approval, obligates Activision Blizzard to implement additional measures ensuring equitable pay and promotion practices within the company. Monetary relief will be provided to women who served as employees or contract workers in California between October 12, 2015, and December 31, 2020, as specified by the CRD.

While Activision Blizzard has not issued a comment on the settlement, the company previously refuted the charges and, following an internal investigation in 2022, asserted the allegations were false.

Brian Bulatao, Activision’s chief administrative officer, highlighted the company’s commitment to diversity and inclusion in its ESG report earlier this year. Initiatives included hiring a chief diversity, equity, and inclusion officer and a head of inclusive game design. Partnerships with organizations like Reboot Representation aimed to increase diversity in technology.

The settlement’s financial terms involve $54.8 million for direct relief to workers and covering litigation costs. Of this amount, $45.7 million will contribute to a settlement fund dedicated to compensating affected workers.

Moreover, the settlement mandates Activision Blizzard to engage an independent consultant to evaluate and provide recommendations on compensation and promotion policies, along with training materials.

If approved, this settlement would be the second-largest in the history of the CRD, with Riot Games holding the record for a $100 million settlement over gender discrimination allegations. Riot Games issued an apology following its settlement with the CRD. The initial estimate by the CRD suggested Activision’s potential liability at nearly $1 billion, based on the claims of approximately 2,500 employees.