Activision Blizzard to Pay $35 Million in SEC Settlement

Posted 2023/02/03 at 1:26 PM by Archimtiros

reported in November 2021sued for sexual harassment and discriminationpress release

Securities and Exchange Commission

“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,” said Jason Burt, Director of the SEC’s Denver Regional Office. “Moreover, taking action to impede former employees from communicating directly with the Commission staff about a possible securities law violation is not only bad corporate governance, it is illegal.”

The SEC’s order finds that Activision Blizzard violated Exchange Act Rules 13a-15(a) and 21F-17(a). Without admitting or denying the SEC’s findings, Activision Blizzard agreed to a cease-and-desist order and to pay a $35 million penalty.Wall Street Journal

The Wall Street Journal

“As the order recognizes, we have enhanced our disclosure processes with regard to workplace reporting and updated our separation contract language,” he said. “We did so as part of our continuing commitment to operational excellence and transparency.”$18 million settlement with the EEOCMicrosoft's $69 billion acquisition

Comment by poovortexyikesComment by Mastalock$35 million to a company this large? They find more than that in their sofa cushionsComment by legoman60lol $35 million.

ActiBlizz made over $5 billion in 2022 alone. $35 million is an accounting adjustment at that point.Comment by SwootcandyAnd now where the money goes? ...Comment by VoniazmogisIt's a penalty or fine, not a settlement.Comment by 1955wow35 million...! Blizz makes that in token sells a week alone.Comment by WeezullAnd now where the money goes? ...Comment by ArchimtirosIt's a penalty or fine, not a settlement.Comment by Archimtiros$35 million to a company this large? They find more than that in their sofa cushionsinstitutionalComment by ComeAndSeeThe money just goes into the pockets of corrupt politicians because none of the victims will get a dime.Comment by VoniazmogisIt's a penalty or fine, not a settlement.Comment by Nymrohd$35 million to a company this large? They find more than that in their sofa cushionsinstitutionalComment by Mardux11It's a penalty or fine, not a settlement.Comment by VoniazmogisI'd counter that massive fines like the ones EU regulatory authorities can issue which are accounted as a % of global revenue are clearly meant for deterrence and to force compliance, not to punish. Companies may feel they can risk skirting regulations because they know they can absorb the fines (and perhaps their non-compliance more than makes up for the fine).Your understanding doesn't change the fact that its a settlement. Both by definition and by the SEC's own words.Comment by ArchimtirosIt's a penalty or fine, not a settlement.Comment by Archimtiros$35 million to a company this large? They find more than that in their sofa cushionsinstitutionalComment by VoniazmogisThe SEC literally said "settled" twice in their press release.

In law, a settlement is a resolution between two disputing parties about a legal case. Civil law also doesn't mean private individuals or that the government isn't involved (ever heard of a Federal Civil Case?), it just means between two parties (they don't have to be individuals) over a dispute which is not criminal in nature. It's also important to note that the SEC is responsible for civil enforcement and administrative actions, not criminal ones - they don't send people to jail.

It's a settlement because both parties voluntarily agreed to the action and dismiss related litigation absent appearing in court. It's also a fine because Activision Blizzard is literally paying a sum of money extracted as a penalty to an authority.Comment by DrakknfyreThis won't even make them blink.Comment by pawpurrGood. As noted in the article, Companies never actually pay enough fines to make up for the rules they broke. Cheat the system, make a billion, pay a million fine, is common place. so please, every acronym agency and regulatory body, have at it. Take your pound of flesh. Work every possible angle, every footnote of law. Give them constant financial reminders of the repercussions of their actions, for years to come.Comment by EasoThat's... yeah. Not much changes in the end. I disagree with ability to pretty much always settle.