Game On: Activision investigated by SEC, EEOC over workplace discrimination - InvestingChannel

Game On: Activision investigated by SEC, EEOC over workplace discrimination

Sega’s ‘Lost Judgment’ out this week
“Game On” is The Fly’s weekly recap of the stories powering up or beating down video game stocks.

NEW RELEASES: This week’s major game release is Sega’s (SGAMY) “Lost Judgment,” an action-adventure game that is a spin-off of the “Yakuza” franchise. The game launches September 24 for PlayStation 4 (SONY), PS5, Xbox One (MSFT), and Xbox Series X/S. Also out this week is Ember Lab’s “Kena: Bridge of Spirits,” an action-adventure title launching September 21 for PS4, PS5, and PC through the Epic Games Store. Investors in Epic include Tencent (TCEHY), KKR (KKR), Disney (DIS), and Sony.

ACTIVISION: The Wall Street Journal reported yesterday that the U.S. Securities and Exchange Commission launched a wide-ranging probe into Activision Blizzard (ATVI), including how the company handled workers’ claims of sexual misconduct and workplace discrimination. A spokeswoman for the company confirmed that there was an SEC probe surrounding “the company’s disclosures regarding employment matters and related issues,” adding that the company is cooperating with the SEC. The Journal later reported that the Equal Employment Opportunity Commission has also been reviewing claims of gender-based harassment at Activision Blizzard since at least May 2020, and the game maker is in settlement discussions with the agency and could pay millions of dollars to settle the matter. These developments come some weeks after the game publisher behind “Call of Duty” and “World of Warcraft” was sued in California over such workplace discrimination and misconduct claims.

In a statement following the Journal’s report, Activision Blizzard said it continues to work with regulators on addressing and resolving workplace complaints and that it is “deeply committed” to new initiatives to help achieve its goal of “ensuring a workplace that is inspiring, equitable, and respectful to all.” In the statement, CEO Bobby Kotick also confirmed that the company is in talks with the EEOC and is cooperating with the agency’s investigation. Meanwhile, the company also said that it has “refreshed” its human resources organization and will welcome new chief people officer Julie Hodges this week, who joins the company from Disney.
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