Shareholders accused the California company of downplaying alleged sexual harassment and discrimination
Los Angeles-based U.S. District Judge Percy Anderson has dismissed a lawsuit accusing the Santa Monica, CA-based company of misleading shareholders by downplaying the severity of alleged sexual harassment and discrimination against female employees, Reuters reported.
Anderson ruled that investors failed to cite specific false statements the company made amid investigations by three government agencies. As a result, they couldn’t prove the video game maker committed fraud. In a proposed class action lawsuit filed in August, the shareholders said Activision's failure to disclose the scale of workplace discrimination artificially inflated the value of the company's stock.
However, Anderson granted investors 30 days to file an amended complaint against Activision, which has denied tolerating discrimination and misleading shareholders.
The company has been in hot water since last year, when the U.S. Equal Employment Opportunity Commission (EEOC) and a California anti-discrimination agency filed separate lawsuits accusing Activision of tolerating widespread bias against women. Additionally, the U.S. Securities and Exchange Commission (SEC) is currently probing the company's disclosures about workplace misconduct.
In March, a federal court approved Activision Blizzard’s $18 million settlement with the EEOC. In the lawsuit filed in September 2021, the EEOC claimed Activision’s...
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