Activision Blizzard, one of the world’s most high-profile video game companies, confirmed a regulatory probe and said it is working to address complaints of workplace discrimination.
The Santa Monica, California, company said Tuesday that it is complying with a recent Securities and Exchange Commission subpoena sent to current and former employees and executives and the company itself on “employment matters and related issues.”
The Wall Street Journal had reported Monday that the SEC was investigating how the company had treated complaints of sexual misconduct and workplace discrimination and had subpoenaed senior executives including CEO Bobby Kotick, a well-known tech billionaire who is Facebook COO Sheryl Sandberg’s ex-boyfriend. An SEC spokesman declined to comment.
Activision Blizzard also said Tuesday that it has cooperated with an Equal Employment Opportunity Commission investigation into employment practices and that it is working with multiple regulators “on addressing and resolving workplace complaints it has received” and that it is committed to making the company “one of the best, most inclusive places to work.” It has hired a new “Chief People Officer” from Disney.
The company’s shares have dropped 20% in two months as legal woes build over an alleged culture of discrimination against women and minorities at the maker of Candy Crush, Call of Duty, Overwatch and World of Warcraft. The stock dropped 3.4% to $73.60 in Tuesday afternoon trading.
In late July, California's civil rights agency sued the company, alleging gender discrimination and sexual harassment. Employees staged a walkout to protest what they said was Activision's culture of sexism and discrimination.
A shareholder lawsuit in August said the company failed to disclose to investors that it was being investigated in California and that it had workplace culture issues that could result in legal problems. The shareholder suit noted unhappiness within the company, saying more than 2,000 current and former Activision employees signed a petition criticizing the company’s response to the California suit as “insulting" and saying they did not trust leadership to “place employee safety above their own interests.”
Starbucks’ decision to restrict its restrooms to paying customers has flushed out a wider problem: a patchwork of restroom use policies that varies by state and city. Starbucks announced last week a new code of conduct that says people need to make a purchase if they want to hang out or use the restroom. The coffee chain's policy change for bathroom privileges has left Americans confused and divided over who gets to go and when. The American Restroom Association, a public toilet advocacy group, was among the critics. Rules about restroom access in restaurants vary by state, city and county. The National Retail Federation says private businesses have a right to limit restroom use.
President Donald Trump is talking up a joint venture investing up to $500 billion for infrastructure tied to artificial intelligence by a new partnership formed by OpenAI, Oracle and SoftBank. The new entity, Stargate, will start building out data centers and the electricity generation needed for the further development of the fast-evolving AI in Texas, according to the White House. The initial investment is expected to be $100 billion and could reach five times that sum. While Trump has seized on similar announcements to show that his presidency is boosting the economy, there were already expectations of a massive buildout of data centers and electricity plants needed for the development of AI.
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