The Securities and Exchange Commission has launched an ‘extensive’ investigation into Activision Blizzard, per The Wall Street Journal. The outlet reports the SEC recently sued the company and several executives, including CEO Bobby Kotick. The agency asked the publisher to share a variety of documents, including correspondence Kotick wrote about complaints of sexual harassment related to Activision employees and contractors.
Helaine Klasky, a spokeswoman for Activision Blizzard, said The journal The SEC’s investigation involves revelations made by the company regarding “employment issues and related issues”. The agency is reportedly hoping to find out if Activision disclosed the issues properly, as well as if the revelations should have been shared earlier.
An SEC investigation adds significantly more regulatory pressure to Activision Blizzard. In July, the California Department of Fair Employment and Housing (DFEH) accused its executives of promoting a “frat boy” culture in the workplace. , only 20 percent of all employees at Activision’s Blizzard Entertainment unit are women, and they are consistently paid less and are overlooked for promotions. A month later, DFEH should include both employees and employees. It also accused the company of using disclosure agreements to obstruct the ability to deal with the breach of the workplace at the studio.
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