The lawsuit filed against games company Activision Blizzard by the California Department for Employment and Housing (DFEH) has been strained following the results of a separate lawsuit by the United States Equal Employment Opportunity Commission (EEOC). The DFEH ran a two year long investigation of the gaming developer culminating in a lawsuit in July. The EEOC also carried out an investigation and lawsuit parallel to the DFEH. The EEOC lawsuit resulted in a settlement for $18 million dollars. 

Why The Settlement Mattered

This caused issues for the case being built by the DFEH. The settlement essentially gives Activision Blizzard the OK to seal (a lot of sources site destroy) evidence vital to the DFEH case. The DFEH sought to dispute, however their request was denied by the EEOC. Notably, due to a conflict in interest, and a breach of California law. Two attorneys who worked for the EEOC, when they were investigating claims that led to the eventual settlement, are in leadership roles for the DFEH team and are now objecting to the settlement.

In response the DFEH, according to the EEOC memorandum, hired new lawyers but were still using material acquired from when the two lawyers were still part of the case. The EEOC is now pushing to bar the entire DFEH case essentially. They claim that there’s no real way to ensure that there was no involvement from the two lawyers. Especially because they were overseeing the case. Meaning the two year investigation is at risk. Making another investigation needed. This would come with its own issues, like precedent and the fact that Activision Blizzard now knows of the investigation. As things stand now, the DFEH is on their back foot.

This debacle follows the increased pressure on Activision Blizzard earlier this year when the DFEH added to the lawsuit. Shareholders reacted with a lawsuit of their own. Further pressure has come from Activision Blizzard staff themselves. A walk-out taking place soon after the lawsuit came to light. The game developer has allegedly housed a community where the mistreatment of women was common. 

Interested Parties

The settlement also sparked backlash from concerned groups. The Communication Workers of America (CWA) released a statement from Sara Steffens the Secretary Treasurer of the CWA on Twitter. “Yesterday’s insufficient EEOC settlement made it clear that the thousands of Activision Blizzard workers who have suffered from years of toxic workplace misconduct on behalf of Activision Blizzard will not receive true justice. Activision Blizzard is worth $72 billion-an $18 million settlement is mere pennies considering the resources available to this cash-rich corporation.”. A sentiment echoed throughout much of the gaming community, with many upset with the settlement and possible altogether loss of the DFEH case.