Activision-Blizzard Under Investigation, Kotick Subpoenaed

For the better part of two months now, we’ve been covering the Activision-Blizzard case the best we can. Though we may have missed a story here and there over the last two weeks. In essence, it started back in July when the California Department of Fair Employment and Housing concluded its two-year investigation into the publisher and developer, ultimately leading to a lawsuit being filed. The fallout of this lawsuit has gone far and wide: Employees walked out, sponsored pulled out, executives and leads departed the company. Additionally, investors called the response “inadequate.” The lawsuit itself levied strong accusations of misogynistic behavior, harassment, and company-wide ignorance or indifference to the reported case. One instance even lead to a woman’s death.

Last week, it was reported by Eurogamer that a new lawsuit was filed to the National Labor Review Board by a worker collective under the ABetterABK banner with the help of the union known as Communications Workers of America. In short, the legal action being taken by the CWA on behalf of ABetterABK is alleging that Activision-Blizzard within the last 6-months has engaged and is engaging in unfair labor practices. It alleges that Acti-Blizz management “is using coercive tactics to attempt to prevent its employees from exercising their rights to stand together and demand a more equitable, sustainable, and diverse workplace,” as noted in their press release last Tuesday. Furthermore they detailed use of practices such as, surveillance, intimidation, and hiring notorious union busters to prevent employee action from being taken.

The other development comes from last week also, as Activision-Blizzard announced their new head of HR, Julie Hodges. Hodges is a former Disney exec of 32-years in the Walt Disney Parks and Resorts sector of the larger company. Effective as of today (September 21st), Hodges is the new “Chief People Officer,” which I feel is a term given too much American friendliness for an HR role. Between 2009 and 2016, Hodges was the SVP for HR for Disney before moving onto her past five years as the SVP of Compensation, Benefits, and Talent Acquisition.

During the time of Hodges being SVP of HR, you may remember a story on the now-defunct site xoJane, headlined “It Happened To Me: I Was Raped At Disney World And Nobody Cared.” Misleading headline written by an editor aside, it is a horrible tale of two employees after-hours drinking off-site and HR telling the writer of the story she was mistaken for drinking at all. As if the actions of one of their male employees were the fault of a female employee. However, it might not surprise you to know similar accounts have continued to happen since Hodges left that position, with one case in 2018 leading to a lawsuit just last year. Not that Hodges is directly responsible, but it could be construed that Activision-Blizzard has hired someone that in-headlines sounds perfect but may have a murky past with their previous employer.

However, none of that is what I wanted to cover today. As of yesterday, according to The Wall Street Journal, the US Securities and Exchange Commission has opened an investigation and subpoenaed Activision-Blizzard CEO, Bobby Kotick, and other executives at the company. When the Journal spoke with an Activision spokesperson, they said the SEC was examining “the company’s disclosures regarding employment matters and related issues.” While Activision-Blizzard was reportedly holding the DFEH at arm’s length and according to the DFEH being uncooperative, it is said the company is participating with the SEC’s investigation. The SEC’s investigation includes requests for notes recorded during board meetings since 2019, all files on six former employees, and the separation agreements from this year.

Also yesterday, former legal counsel at Google and now former Chief Legal Officer and SVP, Claire Hart, left her job at Activision-Blizzard on Friday. In a post on LinkedIn, Hart stated, “After more than three years at Blizzard Entertainment, I have decided to move on to my next adventure. Friday was my last day. The past three years have been full of unexpected twists and turns,” Hart goes on to say, “I feel honored to have worked with and met so many great people at Blizzard and across the Activision-Blizzard businesses.” Hart further mentions that she is taking a short break before her next move. Though I don’t want to cast unnecessary doubt on Hart at this period, the timing of this resignation comes amid several lawsuits levied against Acti-Blizz including those we’ve mentioned from this past two weeks.