Activision Blizzard Inc. is the subject of an investigation by another government agency, this time at the federal level.
The Securities and Exchange Commission has launched an inquiry into the Santa Monica, California-based video game giant over employee allegations of sexual discrimination and harassment in the workplace, as well as whether those issues were properly disclosed to investors and other parties.
The Wall Street Journal first reported the news.
Activision Blizzard (Nasdaq: ATVI), as well as executives including CEO Bobby Kotick, has been subpoenaed for documents including board-meeting minutes from the past three years, personnel files for a half-dozen former employees and separation agreements for some workers who left this year, as well as Kotick’s communications with other company leaders about employee and contractor allegations of sexual discrimination and harassment.
The SEC is looking into “the company’s disclosures regarding employment matters and related issues,” Activision spokesperson Helaine Klasky told the Journal, confirming that current and former employees have been subpoenaed. “The company is cooperating with the SEC.”
The move follows a lawsuit filed by the California Department of Fair Employment and Housing alleging the company behind such games as “Call of Duty,” “World of Warcraft” and “Candy Crush” fostered a “frat house” culture and that female employees were subject to sexual harassment. The suit also states that women of color, in particular, were targeted for discrimination. In addition, the Communication Workers of America filed a complaint with the National Labor Relations Board accusing Activision Blizzard of “coercive behavior” to prevent employees from organizing.
Read more at the Wall Street Journal.
