A harassment and discrimination lawsuit from the California Department of Fair Employment and Housing (DFEH) isn’t the only legal battle Activision Blizzard has to worry about anymore. Ahead of the company’s Q2 earnings call on Tuesday, a firm called Rosen Law filed a class-action lawsuit on behalf of investors who traded in Activision Blizzard securities between August 4th, 2016 and July 27th, 2021.
The firm, the same one that’s behind a similar lawsuit against CD Projekt RED over the disastrous launch of Cyberpunk 2077, accuses Activision Blizzard of intentionally failing to disclose its ongoing problems with sexual harassment and discrimination. In doing so, Rosen Law alleges the company put itself at greater risk of regulatory legal scrutiny and enforcement. The suit names Activision Blizzard CEO Bobby Kotick, as well as several other executives, as defendants and seeks to recover damages for investors under federal securities laws.
The suit comes on the same day the company announced J. Allen Brack was “stepping down” from his role as president of Blizzard Entertainment. In its lawsuit, the State of California accuses Brack of taking “no effective remedial measures” to curb the “bro culture” that enabled individuals like Alex Afrasiabi to harass the company’s female employees. Taking his place are Jen Oneal and former Xbox executive Mike Ybarra, who will oversee the studio as co-leaders.
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