Activision Blizzard is now being investigated by federal regulators over the company’s handling of employee’s allegations of sexual misconduct and workplace discrimination. Reported by The Wall Street Journal, the Securities and Exchange Commission (SEC) has subpoenaed Activision Blizzard and multiple senior executives including CEO Bobby Kotick.
The SEC has requested a a number of documents from Activision Blizzard, including board meeting minutes since 2019, personnel files of six former employees, and separation agreements the company reached with certain staffers in 2021–according to records obtained by WSJ. The SEC also requested Kotick’s communications with other senior executives regarding complaints about sexual harassment or discrimination by employees and contractors.
An Activision Blizzard spokesperson confirmed to GameSpot that the SEC is looking into the company’s inner workings.
“The U.S. Securities and Exchange Commission is conducting an investigation concerning the Company’s disclosures regarding employment matters and related issues, and has issued subpoenas to the Company and several current and former employees that seek information related to this. The Company is cooperating with the SEC.”
The federal branch is trying to see if the company properly disclosed the allegations of workplace harassment and a gender-pay gap, and if that information should have been shared with investors, as well as other parties, before now.
This federal investigation only escalates the ongoing legal trouble Activision Blizzard has been struggling with since the California Department of Fair Employment and Housing sued the company for the alleged sexual harassment and discrimination months ago in July.