US District Court Approves $18M Settlement Between Activision Blizzard And EEOC

The legal feud between Activision Blizzard, the Equal Employment Opportunity Commission (EEOC), and California’s Department of Fair Employment and Housing (DFEH) over the proposed $18 million settlement has come to an end.

U.S. District Judge Dale Fischer has approved the settlement between Activision Blizzard and the EEOC, reports moving to block since September 2021 because of the negative effects it would have on their own case against the video game company.

During the hearing, the DFEH’s legal representative argued that the settlement was a violation of the State’s jurisdiction. The EEOC’s lawyers, however, countered that the DFEH had months to play the federalism card but chose to bring it up at the “eleventh hour” and accused the agency of delaying and derailing the proceedings.

Judge Fischer ultimately sided with the EEOC calling the DFEH’s jurisdiction argument as “untimely” and advising those who disagree with the ruling to take it up to the Court of Appeals.

“We are gratified that the federal court that reviewed our settlement with the EEOC is finding that it is ‘fair, reasonable and adequate and advance(s) the public interest,’” said Activision Blizzard CEO Bobby Kotick in a press release.

“The Court’s approval is a vital step in our journey to ensuring that everyone at Activision Blizzard always feels safe, heard and empowered. We hope the court’s findings – including its view that many of the objections raised about our settlement were inaccurate and speculative – will dispel any confusion that may exist. With all of the of the settlement reviewed and approved, we can move forward,” he concluded.

“It’s a clear win for Activision Blizzard the company,” a legal expert told The Washington Post. “They lose a small amount and they are effectively undercutting the state law proceedings where the state agency was far more aggressive.” The Call of Duty publisher recorded a total revenue of $8.8 billion in 2021 and the $18 million settlement will barely put a dent in their coffers.

The $18 million settlement will be the second largest sexual harassment settlement that the EEOC has ever negotiated.

Meanwhile, the DFEH’s lawsuit against Activision Blizzard is still moving forward with a trial date set for February 2023.