Activision Blizzard has been mired in allegations, accusations, and controversy for months, first due to a lawsuit targeting Activision's reported frat boy atmosphere--which reportedly led to a toxic workplace and significant gender discrimination--and then due to workers from the group ABK Workers Alliance filing an unfair labor practice suit with the National Labor Relations Board. Recently, Activision appeared to be ready to settle with the Equal Employment Opportunity Commission, concluding a three-year-long investigation, but California's Department of Fair Employment and Housing has issued a formal objection to the settlement.
According to documents circulated on Twitter by Stephen Totilo, co-author of the Axios Gaming newsletter, the California DFEH is arguing that Activision's settlement with the EEOC would cause "irreparable harm" to its own lawsuit. Apparently, the terms of the settlement would require employees to release Activision Blizzard from claims under California state law, which the DFEH believes would have serious repercussions for its suit.
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The DFEH appears to have written notes claiming that its pending enforcement action will be seriously harmed by the uninformed waivers featured in the settlement with the EEOC. Reportedly, not only will these waivers be made conditional for victims to find relief, but the proposed consent decree also features provisions that sanction the destruction or tampering of critical evidence. The California DFEH has previously accused Activision Blizzard of tampering with the investigation, which may lend this objection some additional credibility.
Apparently, the DFEH previously objected to a rushed settlement to a gender discrimination lawsuit between Riot Games and female workers, suggesting that the department has observed similar circumstances before. However, this time the terms of the settlement appear to permit the destruction of evidence critical to a completely different case from the one being settled. The DFEH wrote that "The proposed consent decree also contains provisions sanctioning the effective destruction and/or tampering of evidence critical to the DFEH's case, such as personnel files and other documents referencing sexual harassment, retaliation and discrimination."
The number of lawsuits currently filed against Activision Blizzard may continue to cause problems for the company, particularly if they make it difficult for Activision Blizzard to reach settlements. That said, it appears that the controversy may be blowing over somewhat, as Overwatch League sponsors have quietly begun returning. Activision Blizzard has also made a number of changes to its catalog of games, including removing references to developers and taking out crass or insensitive voice lines and imagery.
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Source: VG247