Activision Harassment Suits Ignite EEOC-California ‘Turf War’

A one-of-a-kind clash between the U.S. EEOC and a California civil rights agency over sexual harassment and bias claims against Activision Blizzard Inc. is likely to create confusion for other employers and stall efforts to overhaul the game maker’s “frat bro” culture, legal observers said.

California’s Department of Fair Employment and Housing, which accused Activision of a toxic workplace culture in a July lawsuit, is butting heads with the Equal Employment Opportunity Commission over the federal agency’s proposal to settle similar claims for $18 million.

State regulators have sought to block that deal, saying it would hurt their ...