US SEC Is Now Investigating Activision Blizzard

According to the Wall Street Journal, the US Securities and Exchange Commission has launched its own investigation into Activision Blizzard’s response to sexual misconduct and workplace harassment allegations.
The SEC reports that it has requested a variety of documents from the publisher, including Kotick’s communications with other high-level executives about the allegations. Further, the regulator wants to see separation agreements for employees who left this year, personnel files for six former employees, as well as board meeting minutes going back two years.
Activision Blizzard’s representative said the company is cooperating with the SEC investigation, noting that the agency has subpoenaed past and present employees.
“Our company has made and is making a number of significant changes in order to eliminate discrimination, harassment, or unequal treatment of any kind,” the representative said.
The SEC is investigating whether Activision Blizzard had a duty to inform investors about its investigation into workplace and gender pay gap allegations before the California Department of Fair Employment and Housing made them public.
According to the company, when the lawsuit was filed, it had been “extremely cooperative throughout the DFEH’s investigation” and the complaint was inaccurate, distorted, rushed, and in many cases false.
Activision Blizzard investors think they should have been informed sooner, as they have filed a lawsuit against the publisher alleging it “made false and/or misleading statements” and failed to disclose a number of relevant facts about the business regarding the DFEH case.
A DFEH lawsuit regarding the shredding of documents has been escalated, the Communications Workers of America has filed a complaint with the National Labor Relations Board alleging illegal labor-busting tactics, and the company’s president and global HR manager have resigned over the matter.

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