Activision Blizzard hit with $35 Million Fine by SEC for Workplace Misconduct Disclosure Violations

The American video game holding company, Activision Blizzard, known for producing major IPs such as World of Warcraft, Call of Duty and Overwatch, has been hit with a $35 million fine by the U.S. Securities and Exchange Commission for "failing to maintain proper disclosure controls related to workplace misconduct complaints and violating whistleblower protection rules."

The SEC stated that Activision Blizzard was aware of the critical importance of employee morale and motivation, but failed to implement controls to collect and analyze employee complaints of workplace misconduct between 2018 and 2021.

Adding insult to injury, the company was also found to have executed separation agreements that violated SEC whistleblower protection rules by requiring former employees to notify the company if they received a request for information from the Commission's staff.

Despite not admitting or denying the findings, Activision Blizzard has agreed to a cease-and-desist order and will pay the $35 million penalty to settle its violations, which date back to 2016.

"This is a clear message to all companies that they must have adequate controls and procedures in place to collect and review employee complaints and ensure they are in compliance with all SEC rules and regulations," said Jason Burt, Director of the SEC's Denver Regional Office. "Impeding former employees from communicating directly with the Commission is not only poor corporate governance, it's illegal."