California Department of Fair Employment and Housing v. Activision Blizzard facts for kids
Quick facts for kids California Department of Fair Employment and Housing v. Activision Blizzard |
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| Court | Los Angeles County Superior Court |
| Full case name | California Department of Fair Employment and Housing v. Activision Blizzard |
California Department of Fair Employment and Housing v. Activision Blizzard is a legal case that started in July 2021. It involves the California Department of Fair Employment and Housing (DFEH) and a big video game company called Activision Blizzard.
The DFEH filed a lawsuit because they believed Activision Blizzard had unfair practices. They claimed the company's workplace culture was not welcoming for women. They also said that hiring and job practices were unfair to women.
Activision Blizzard first said the claims were not true. But many employees, over 2,600 out of 9,500, signed a letter. They asked the company to take the issues seriously and make changes.
Even though CEO Bobby Kotick promised a review, employees were not happy. They decided to walk out of their jobs on July 28, 2021. Other game developers and players around the world supported them.
This lawsuit also led to another legal case from Activision Blizzard's shareholders. They claimed the company did not properly share important information. Later, a report from The Wall Street Journal said Kotick knew about problems for years. This led to more employee protests and calls for Kotick to leave his job.
Many people in the gaming world see this lawsuit as a big moment. It's making the video game industry think about fairness and safety for all workers. It also makes people consider if workers should form groups, like unions, to protect their rights.
About Activision Blizzard
What is Activision Blizzard?
Activision Blizzard is a huge company that makes video games. It was created in 2008 when Activision Inc. and Vivendi Games joined together. Vivendi Games owned Blizzard Entertainment, which made the very popular game World of Warcraft.
The two companies merged because World of Warcraft was growing fast. Activision wanted to get into the world of online multiplayer games. After the merger, Activision Blizzard became one of the biggest game publishers.
In 2016, Activision Blizzard grew even more. They bought King, the company behind the famous mobile game Candy Crush Saga. King became the third main part of Activision Blizzard.
Bobby Kotick has been the CEO of Activision and Activision Blizzard since 1991. The company makes billions of dollars each year. It is the largest video game publisher in North America.
Around 2018, Blizzard Entertainment started to change. Some important people left, and the company began to focus more on mobile games. This was different from Blizzard's usual focus on computer games.
Some people felt that Activision, the parent company, was pushing Blizzard to make more money. For example, a game called Warcraft 3: Reforged had its budget cut. This affected the game's quality when it was released.
The Lawsuit Explained
Why the Lawsuit Started
The DFEH spent two years investigating Activision Blizzard. On July 20, 2021, they filed a lawsuit in Los Angeles Superior Court. The lawsuit claimed that Activision Blizzard had a workplace where female employees faced unfair treatment.
The DFEH wanted the court to make Activision Blizzard follow state laws. They also wanted money for female employees who were affected. This money would cover things like unpaid wages and lost benefits.
The lawsuit said that 80% of Activision Blizzard's workers were male. This created an environment that was not fair to female employees. The problems were mostly at Blizzard Entertainment, but also in other parts of the company.
For example, the lawsuit mentioned male employees playing games during work. They would sometimes leave their tasks for female co-workers to finish.
Specific Claims in the Lawsuit
The lawsuit mentioned a former creative director for World of Warcraft, Alex Afrasiabi. It claimed he was involved in several incidents. Activision Blizzard later said Afrasiabi was fired in 2020 after their own investigation.
Other claims focused on unfair treatment of female employees, especially women of color. This included issues with hiring, pay, job assignments, promotions, and even being fired.
Women were reportedly paid less than men for the same work. They also received less stock and bonus pay. The lawsuit said women had to work much harder to get promoted, or they were completely overlooked.
Some female employees said they were denied promotions because they might get pregnant. Others were criticized for needing to pick up their children. Some even reported being kicked out of lactation rooms by male colleagues who wanted to use the room for meetings.
The DFEH also said Activision Blizzard did not properly handle reports of unfair treatment. They also failed to consider diversity enough in hiring and promotions.
How the Lawsuit Grew
The DFEH expanded its lawsuit on August 24, 2021. It now included temporary and contract workers, not just permanent employees. California law protects these workers too.
The DFEH also accused Activision Blizzard of hiding important documents. They claimed the company's HR department shredded papers that were needed for the case. Activision Blizzard denied this, saying they followed all requests.
In February 2022, a judge allowed the expanded lawsuit. A trial date was set for February 2023.
Other Investigations and Lawsuits
EEOC Lawsuit
A separate investigation by the Equal Employment Opportunity Commission (EEOC) was also happening. The EEOC is a federal agency that deals with workplace fairness.
In September 2021, the EEOC filed its own lawsuit against Activision Blizzard. They said they couldn't reach a fair agreement with the company. Activision Blizzard then announced they had settled with the EEOC.
As part of this settlement, the company said it would create an $18 million fund. This money would help employees who experienced unfair treatment. Bobby Kotick stated that there is "no place anywhere at our company for discrimination, harassment, or unequal treatment."
However, some groups criticized the settlement. They felt $18 million was not enough compared to the company's huge value. The DFEH also tried to challenge this settlement. They argued it might affect their own case and allow evidence to be destroyed.
In March 2022, the court accepted the $18 million settlement. Employees who took money from this fund could not be part of the DFEH lawsuit.
Wrongful Death Lawsuit
In March 2022, the parents of a former Activision Blizzard employee filed a wrongful death lawsuit. Their child had died in 2017 during a company event. The lawsuit used details from the DFEH case.
The parents claimed Activision did not fully help with the investigation into their child's death. However, the family later asked for the lawsuit to be dismissed in June 2022.
Harassment and Discrimination Lawsuit
Another lawsuit was filed by a current employee, called "Jane Doe" to protect her privacy. She claimed she faced unfair treatment and harassment at Activision Blizzard. She also said she was discouraged from reporting problems and faced consequences when she did.
Claims of Government Interference
In April 2022, two lawyers from the DFEH left the case. One was later fired by California Governor Gavin Newsom. The other lawyer resigned in protest.
She accused Governor Newsom's office of interfering with the lawsuit. She claimed they asked for details about the legal strategy. Newsom's office has denied these claims.
Impact of the Lawsuit
Changes in Games and Events
The lawsuit had a big effect on Blizzard's plans. They canceled a live event for a new Hearthstone game expansion. Instead, they just posted an announcement online. The team said they wanted to show respect for their co-workers.
The World of Warcraft team also announced changes. They would remove content from the game that was "not appropriate for our world." This included characters named after people mentioned in the lawsuit. They want to make the game world, Azeroth, more welcoming.
In the Overwatch game, a character named McCree was renamed. His new name is Cole Cassidy. This happened because the character was named after an employee who was no longer with the company. Blizzard said they would stop naming characters after employees in the future.
Blizzard also decided not to hold their big annual event, BlizzCon, in 2022. They said they would use the time to support their teams and make their games better. They also want to make sure future events feel safe and welcoming for everyone.
Sponsorship Changes
Several big companies stopped sponsoring Activision Blizzard's esports leagues. T-Mobile removed its branding from the Overwatch League and Call of Duty League. Coca-Cola and State Farm also said they would step back from sponsoring the Overwatch League.
Kellogg's decided not to continue its sponsorship of the Overwatch League. IBM's branding was also removed from Overwatch League media. Even the U.S. Army pulled its sponsorship from the Call of Duty Esports League. These changes show how serious the lawsuit's impact was.
Awards Show Changes
Geoff Keighley, who created and hosts The Game Awards, also spoke out. He said he was rethinking the show's relationship with Blizzard. He wanted the show to support employees and developers.
Later, Keighley confirmed that Blizzard would not be a main part of the 2021 ceremony. Only games nominated for awards would be featured.
Images for kids
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The old Activision Blizzard logo
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Bobby Kotick, CEO of Activision Blizzard
