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Update: An Activision Blizzard representative reached out with the following statement from the company.
"We are pleased to have amicably resolved this matter. As the order recognizes, we have enhanced our disclosure processes with regard to workplace reporting and updated our separation contract language. We did so as part of our continuing commitment to operational excellence and transparency. Activision Blizzard is confident in its workplace disclosures."
As the SEC handles issues dealing with the financial market, these charges have nothing to do with sexual harassment or discrimination issues in themselves. Instead these charges address Activision Blizzard's alleged failure to adequately collect information about internal reports of sexual harassment, leaving its "ability to attract, retain, and motivate employees" at an unknown level of risk, potentially damaging both the company itself and its investors.
The SEC says that Activision Blizzard also wrongly required former employees to disclose when they were talking to the Commission - a violation of a whistleblower protection rule. SEC Denver Regional Office director Jason Burt says that "taking action to impede former employees from communicating directly with the Commission staff about a possible securities law violation is not only bad corporate governance, it is illegal."
The Commission has found that Activision Blizzard has violated both those rules, but the company is set to pay out its $35 million penalty "without admitting or denying the SEC’s findings."
