Activision sued by another federal agency, immediately settles lawsuit for $18 million

Earlier today the US Equal Employment Opportunity Commission filed a lawsuit against Activision Blizzard after a three year investigation into alleged workplace discrimination. It wouldn’t have come as a surprise to Activision. The EEOC’s lawsuit says the agency issued Activision a letter on June 15—nearly a full month before California’s Department of Fair Employment and Housing lawsuit was issued—and according to the Wall Street Journal, the parties have been in talks since.

Those talks must not have worked out—the EEOC sued today, after all. But the filing appears to have resulted in an about-face on Activision Blizzard’s part: In a press release, the company has announced an agreement with the EEOC mere hours after the initial filing. The agreement involves the creation of an “$18 million fund to compensate and make amends to eligible claimants,” while any remaining cash will be given to relevant charities.

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