Activision Blizzard charged with employment misconduct

Activision Blizzard has a lot of internal problems, and the company probably wants to solve them all in an attempt to repair its reputation. The company appears to be using its checkbook to fix these problems. The U.S. Securities and Exchange Commission issues a complaint to Activision Blizzard for various violations, but all indications are that nothing will come of it.

Agreement to withdraw the accusation

According to a statement posted on the SEC’s website, they have agreed to pay $35 million to drop the allegations related to workplace misconduct. The SEC acknowledges that Activision Blizzard lacked the necessary methods and tools to review and evaluate employee complaints.

The director of the SEC’s Denver regional office, Jason Burt, comments:

“The SEC’s order finds that Activision Blizzard failed to implement the necessary controls to collect and review employee complaints of workplace misconduct, leaving it with no means to determine whether there were larger issues that should be communicated to investors.”

“Moreover, acting to impede former employees from communicating directly with the Commission staff about a possible securities law violation is not only bad corporate governance, but it is also illegal.”

For its part, Activision Blizzard’s reaction was swift.

A spokesperson for Activision Blizzard responds:

“We are pleased to have amicably resolved this matter. As the order acknowledges, we have improved our disclosure processes with respect to workplace information and updated the language in our separation agreements. We have done so as part of our ongoing commitment to operational excellence and transparency. Activision Blizzard is confident in its workplace information.”

What is the current status of the Activision Blizzard acquisition?

Microsoft’s acquisition of Activision Blizzard is currently at a crucial point and depends mainly on what the regulators say. The European Commission is compiling a list of concerns, as it became known a short time ago. Microsoft has already been informed of these issues.

However, everyone is waiting for the UK CMA to publish its preliminary findings over the next week, which will clearly indicate the UK regulator’s final judgment.

 However, Microsoft has reportedly received a list of objections and an antitrust notice from the European Commission.

Notably, the European regulator’s objections are private, and the E.U.’s current concerns are unknown. However, according to a company representative, Microsoft is looking for a way forward.

The spokeswoman stressed:

“We are aware of the objections on the part of the European Commission. But we are confident that we will be able to resolve them.”

On April 11, the European Commission will announce its decision.

Header: Activision Blizzard