Activision is back in hot water. This time, it’s with America’s biggest and baddest regulator.
The Securities and Exchange Commission is investigating Activision Blizzard, one of the world’s largest gaming companies. The company has been at the core of an ongoing controversy involving company-wide sexual harassment and discrimination.
California’s Department of Fair Employment and Housing filed a lawsuit involving the claims, which was followed by an investor class action against the company. Just last week, another suit was filed by employees and a major media labor union against the company. The suit aims to go after Activision Blizzard for allegedly intimidating workers and preventing them from forming a union. 😲
The SEC’s investigation will focus on the company’s handling of the allegations against the company and its employees. The agency subpoenaed the company, current and former employees, and intends to find out if Activision Blizzard intentionally withheld “material information” from investors. While some analysts indicate it’s unlikely the SEC’s search will bring about any new information, it’s still a possibility. Regardless, it’s never a great precedent to have a regulator knocking at your door. 😬
$ATVI fell 4.3% this week. It’s down 16.2% YTD.