- Activision Blizzard (ATVI) reached an agreement with the U.S. Securities and Exchange Commission (SEC) and will pay a total of $35M to resolve allegations of failing to keep appropriate disclosure safeguards in place and violating a rule protecting whistleblowers in connection with employee grievances of gross misconduct.
- The SEC claimed that by breaking these standards, the corporation had violated U.S. law and that it lacked the necessary resources to effectively address employee complaints. Activision Blizzard has officially admitted guilt and reached a settlement with the SEC through a sizeable payment.
- Stricter employee rules and more reliable support systems are part of Activision Blizzard's internal reform, but it's anticipated that the SEC will continue to monitor the company.
Why it matters
Activision Blizzard has been the target of numerous lawsuits over a number of years, many of which are said to have been motivated by an alleged "fratboy culture" inside the business that alienated many employees and created a toxic work environment.
