SEC Activision fine overview:

• Who: Activision Blizzard has agreed to a $35 million fine lobbied at the video game maker by the U.S. Securities and Exchange Commission (SEC).
• Why: Activision is accused of violating the SEC’s whistleblower protection rules and failing to have a system in place to keep a record of employees’ company misconduct complaints.
• Where: Activision makes video games played by consumers nationwide.

Activision Blizzard Inc. has agreed to pay a $35 million fine to resolve claims by the U.S. Securities and Exchange Commission (SEC) that the video game maker violated its whistleblower protection rules, among other things.

Activision was accused by the SEC of requiring former employees — from 2016 to 2021 — to sign disclosure agreements promising they would let the company know if an agency similar to the SEC reached out to them during an investigation.

“Between 2016 and 2021, in the ordinary course of Activision Blizzard’s business, a significant number of departing employees signed separation agreements that contained this notification clause,” the SEC said.

The SEC argued Activision violated the agency’s whistleblower protection rule — Exchange Act Rule 21F-17(a) — by requiring its outgoing employees to sign the agreements.

The whistleblower rule, the SEC said, prohibits any person from “taking any action to impede an individual from communicating directly with the Commission staff about a possible securities law violation.”

Activision accused...

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