Activision Blizzard facing second lawsuit following financial call

Activision Blizzard facing second lawsuit following investor call

This evening the latest Activision Blizzard financial call took place for the second quarter results (see slides) and although the results were better than expected, shareholders are not impressed.

The first DFEH lawsuit has spooked investors following the drop in the company’s share price over the past couple of weeks. This has now prompted a class-action lawsuit from shareholders not best pleased with what’s been happening at the company. It specifically states that Activision Blizzard had failed to disclose to investors what was happening at the company.

It also had to be noted that in investor call slides there was a slide specifically tackling the current problems at the company which stated what actions they are taking.

  1. We have asked Jennifer Oneal and Mike Ybarra to assume responsibility for development and operational accountability for Blizzard.
  2. We will continue to investigate each and every claim and complaint that we receive. When we learn of shortcomings, we will take decisive action. To strengthen our capabilities in this area we will be adding additional staff and resources.
  3. We will terminate any manager or leader found to have impeded the integrity of our processes for evaluating claims and imposing appropriate consequences.
  4. We will be adding resources to ensure and enhance our consideration of diverse candidate slates for all open positions.
  5. We have heard the input from employee and player communities that some of our in-game content is inappropriate. We will be actively reviewing that content and removing it, as appropriate.

The whole thing is a complete mess and heads should be rolling, specifically the ones right at the top (looking at you Bobby Kotick). They should have had a finger on the pulse of what was going on lower down the chain and staff should have been protected.

Whether this will change the culture within videogame companies remains to be seen but this industry needs to get its act together. So many staff have not been treated well for years while the big profits roll in. It simply has to change and now is the time to change it with such high profile companies as UbiSoft, RIOT, and Activision being caught out.



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Elly

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Activision Says 40 Employees Disciplined Over Misconduct Scandal​

"Activision Blizzard Inc. said more than 20 employees have “exited” and at least 20 others have received disciplinary action as part of an internal investigation into allegations of sexual harassment or misconduct over the past three months.

....
ownsend said the company will add 19 new full-time roles to its ethics & compliance team, expand and consolidate its investigations and triple its investment in training resources.

“We are committed to making meaningful and positive change, and this is just the start,” she wrote.

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Elly

Administrator

92 messages 56 likes

Activision CEO seeks large pay cut, links it to gender – related goals

Oct 28 (Reuters) – Activision Blizzard Inc Chief Executive Officer Bobby Kotick has asked the company's board to reduce his total compensation to $62,500, at a time when the owner of the "Call of Duty" franchise is battling claims over sexual harassment and discrimination at its workplace.
Kotick, who received a total compensation $154.6 million last year, said in a letter sent to employees on Thursday that he has sought a cut in his compensation until the company's transformational gender-related goals are met.

The video game publisher has also introduced a zero-tolerance harassment policy company-wide along with other changes like increasing the percentage of women and non-binary people in the company by 50% and waiving arbitration of sexual harassment and discrimination claims.
"Any Activision Blizzard employee found through our new investigative processes and resources to have retaliated against anyone for making a compliance complaint will be terminated immediately," Kotick said.

Earlier this month, Activision said it had fired more than 20 employees following allegations of sexual harassment and discrimination at the workplace, with 20 more individuals facing other forms of disciplinary action.

The company is set to report third-quarter earnings on Tuesday after markets close.

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