Activision Blizzard will pay $35 million to settle charges from the Securities and Exchange Commission that it “failed to maintain disclosure controls and procedures to ensure that the company could assess whether its disclosures pertaining to its workforce were adequate.” The settlement also resolves charges that Activision Blizzard violated whistleblower protection regulations. The company is settling the charges without admitting to or denying them.
"The SEC’s order finds that Activision Blizzard failed to implement necessary controls to collect and review employee complaints about workplace misconduct, which left it without the means to determine whether larger issues existed that needed to be disclosed to investors,” SEC Denver regional office director Jason Burt said in a statement.
The SEC claims that, between 2018 and 2021, the company “lacked controls and procedures among its separate business units to collect and analyze employee complaints of workplace misconduct." Because of that, Activision Blizzard higher ups didn’t have the information they needed to fully comprehend the substance and number of workplace misconduct complaints, according to the order. Nor did management review whether there were any material issues that would have warranted public disclosure, the SEC found.
In addition, the SEC determined that the company violated a whistleblower protection rule as a result of separation agreements it carried out between 2016 and 2021. Activision Blizzard...
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