Activision Probe Expands as Regulators Subpoena Police Records

Feb. 18, 2022, 12:08 AM UTC

California’s civil rights agency is expanding its probe into embattled game maker Activision Blizzard Inc. and is seeking access to police records concerning its executives and company events.

The Department of Fair Employment and Housing sued Activision in July following a multi-year investigation into allegations of sexual harassment and discrimination against female employees at the company. The agency is now also seeking information about criminal investigations and complaints involving 19 individuals, as well as about events that occurred at Blizzcon, an annual gaming convention, and at the company’s corporate headquarters, according to public court filings.

The names of the individuals are redacted in the DFEH documents, but an Activision filing says the list includes CEO Bobby Kotick.

“The list includes names of people who, from Activision Blizzard records, have never been accused of engaging in sexual harassment, including its CEO, the former CEO of Blizzard Entertainment, a Human Resources representative, and other employees,” Activision said in letter to DFEH on Jan. 31, that was included in court filings.

The DFEH subpoenaed police departments in Los Angeles, Anaheim, Irvine, and Santa Monica, Calif., on Jan. 20, according to court documents. The filings, first reported by the Wall Street Journal on Thursday, show the agency is seeking police records related to complaints, calls for service, or criminal investigations arising out of BlizzCon, as well as from activities at both Blizzard and Activision’s offices.

In emails from January and February, agency officials and lawyers for Activision have sparred over whether the information is relevant to the lawsuit, with Activision accusing DFEH of “seeking this information for improper purposes, including to harass, annoy or embarrass individual employees.”

“This effort to sift through sensitive, non-public information is particularly alarming,” an Activision attorney said in the Jan. 31 letter to the DFEH.

“The DFEH is requesting sensitive, confidential information with no limits or relevant scope from Southern California police departments,” an Activision spokesperson said Thursday. “Rather than protecting California workers, the DFEH is impeding the meaningful progress at Activision Blizzard and delaying compensation to affected employees.”

DFEH declined a request to comment and directed Bloomberg Law to its court filings.

Microsoft Corp. in January announced a nearly $69 billion deal for Activision.

The subpoenas have intensified the legal dispute between DFEH and Activision as the company moves to close the deal. Separately, Activision has reached an $18 million settlement with the U.S. Equal Employment Opportunity Commission over harassment and discrimination claims. DFEH sought to intervene in that suit, claiming it would undercut California’s own lawsuit, but a federal judge in December rejected the agency’s request.

Paul Hastings represents Activision.

The case is Dep’t of Fair Employment and Housing v. Activision Blizzard Inc., Cal. Super. Ct., No. 21STCV26571, 2/17/22.

To contact the reporter on this story: Maeve Allsup in San Francisco at mallsup@bloomberglaw.com

To contact the editor responsible for this story: Meghashyam Mali at mmali@bloombergindustry.com

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