The ongoing lawsuit between Activision Blizzard and the State of California has defined the company’s public image for months. And now the US Securities and Exchange Commission, which helps protect investors and market integrity, is getting involved with the situation. The investigation is reportedly “wide-ranging” and includes issues such as workplace discrimination and sexual harassment allegations, both of which have appeared in other legal complaints against Activision Blizzard in recent months.
According to the Wall Street Journal, the SEC has subpoenaed Activision, Activision CEO Bobby Kotick, and other senior executives as part of its investigation into the company’s practices. As part of the investigation, the SEC is demanding that Activision Blizzard turn over documents pertinent to the case, including specific minutes from Activision board meetings, personnel files for six employees, and communication from CEO Bobby Kotick to other executives about sexual harassment complaints.
The allegations have shaken the foundation of Activision Blizzard since July, when the State of California filed its initial complaint against the company. In the time since, public perception of Activision Blizzard has shifted dramatically, as employees organized walkouts and public figures in the games industry called for boycotts of the company’s products. Meanwhile, Activision Blizzard has done its best to focus attention on upcoming game releases, like Call of Duty: Vanguard and Diablo 2 Resurrected.
An SEC investigation into Activision Blizzard could have serious ramifications for the company as a whole. However, while the company is currently facing a lower share price due to an unrelated market dip affecting numerous companies, only a dollar or two has been lost on its total share price because of the SEC investigation news, according to Bloomberg reporter Jason Schreier.
Activision is one of the largest publishers in the industry. The Call of Duty games, which Activision publishes, are regularly the top-selling games of each year, despite traditionally releasing in November. Blizzard, which Activision also owns, is notable for many of its contributions to the games industry, such as the MMO World of Warcraft and the long-running Diablo franchise, among others. The company also has several games integral to the esports scene, like Overwatch.
The SEC’s investigation into the company is noteworthy, though not necessarily unexpected. Activision Blizzard has allegedly destroyed evidence pertaining to California’s investigation, so it’s no small wonder that a federal commission is getting involved with the situation. It does beg the question of how the situation will be resolved, however.
Source: Wall Street Journal (via Jason Schreier)