Blizzard Class Action Lawsuit, Inside The $54 Million "Frat Boy Culture" Settlement That Rocked Gaming

Blizzard Entertainment faces a class action lawsuit alleging systemic workplace discrimination, sexual harassment, and retaliation against women employees. The California Civil Rights Department reached an approximately $54 million settlement in December 2023 to resolve allegations that Activision Blizzard discriminated against women by denying promotion opportunities and paying them less than men. The case exposed what prosecutors described as a toxic workplace culture affecting hundreds of employees, triggering multiple settlements and industry-wide accountability discussions.

If you’re following gaming industry litigation, wondering how discrimination lawsuits against major companies unfold, or researching employee legal rights, here’s what you need to know about the specific allegations, settlements reached, and ongoing legal implications.

What Are the Allegations in the Blizzard Class Action Lawsuit?

The lawsuit contends that Activision Blizzard and its workforce, which is 80% male, contribute to a hostile atmosphere towards female employees. The lawsuit alleges that Activision Blizzard’s female workers who spoke to investigators “almost universally confirmed” that their time at the company was “akin to working in a frat house”.

Specific allegations include:

Pay discrimination: Women were allegedly paid less than men, both when they were hired and during the course of their employment, and afforded less stock and incentive pay opportunities
Promotion barriers: Women reportedly had to work much harder to be promoted, or were passed over entirely, with some women employees denied promotions due to fears they might become pregnant
Sexual harassment: Male employees drank on the job and came to work hungover, with alleged sexual harassment ranging from comments about women’s bodies and jokes about rape to unwanted touching
Retaliation: Female employees and contingent workers were subjected to retaliation for filing complaints, including being deprived of work on projects, unwillingly transferred to different units
Systemic patterns: African American women and other women of color were particularly impacted by Activision Blizzard’s discrimination

The complaint describes male employees playing video games during work hours while delegating their job to women employees, engaging in sexual banter. The lawsuit mentions “cube crawls” in which drunk male employees subjected women to unwanted advances.

Blizzard Class Action Lawsuit, Inside the $54 Million Frat Boy Culture Settlement That Rocked Gaming

Who Are the Plaintiffs and What Do They Seek?

The California Civil Rights Department filed a lawsuit in 2021 for alleged violations of California’s Equal Pay Act and Fair Employment and Housing Act, seeking relief on behalf of the State of California and a class of women employees and contract workers.

Women who worked as employees or workers assigned by temporary staffing agencies who worked at Activision Blizzard in California between October 12, 2015, and December 31, 2020 are covered individuals. This class includes full-time employees and contract workers who experienced discrimination in compensation, promotions, and workplace conditions.

The lawsuit sought injunctive relief requiring Activision Blizzard to comply with state workforce protections, along with damages including unpaid wages, pay adjustments, back pay, and lost wages and benefits.

Timeline: From DFEH Investigation to Multiple Lawsuits

Investigation Phase:

After more than two years of investigation, CRD filed a lawsuit against Activision Blizzard in 2021
A Director’s Complaint was filed on October 12, 2018, with an Amended Director’s Complaint on October 29, 2018, and a Second Amended Director’s Complaint on December 7, 2018

Public Lawsuit:

On July 20, 2021, DFEH filed a lawsuit in Los Angeles Superior Court
On July 21, 2021, the day the lawsuit became public, Activision Blizzard responded with a public statement describing the allegations as distorted and false

Employee Response:

More than 2,600 of the company’s 9,500 staff signed an open letter demanding the company take the allegations seriously
Employees staged a walkout on July 28, 2021, virtually joined by other developers and players across the industry

Parallel Federal Actions:

On Sept. 27, 2021, the EEOC filed a lawsuit alleging that Activision Blizzard violated Title VII of the Civil Rights Act of 1964
U.S. District Court for the Central District of California approved and entered the consent decree between Activision Blizzard and the EEOC, which includes $18 million in monetary relief

Settlement Reached:

The CDFE, now the California Civil Rights Department (CRD), and Activision Blizzard announced they had settled the lawsuit on December 15, 2023, pending court approval
The court approved the Consent Decree on January 17, 2024

What Legal Claims Have Been Filed?

The Blizzard class action lawsuit includes multiple legal theories under both state and federal law:

California State Claims:

Violations of California’s Fair Employment and Housing Act (FEHA)
Violations of California’s Equal Pay Act
Sex-based discrimination in compensation, assignment, promotion, and termination
Hostile work environment
Retaliation against complainants
Failure to prevent discrimination and harassment

Federal Claims (EEOC):

Violations of Title VII of the Civil Rights Act of 1964, which prohibits sexual harassment, pregnancy discrimination, and retaliation

The Director’s Complaints alleged that Defendants engaged in discrimination against their employees on the basis of sex-gender, including failing to hire, select, or employ persons because of their sex, as well as discriminating in compensation or in the terms, conditions, privileges of employment due to their sex.

How Has Blizzard Responded to the Allegations?

Initial Response: On July 21, 2021, Activision Blizzard responded with a public statement that the allegations did not accurately portray the company’s current culture, describing the suit as irresponsible, the allegations as distorted and false, and the DFEH as “unaccountable state bureaucrats”.

Leadership Changes:

Blizzard President J. Allen Brack stepped down from his position on August 3, 2021
Kotick stayed as the CEO of Activision Blizzard until December 29, 2023, after which he then retired from the company
Blizzard president Mike Ybarra and chief design officer Allen Adham left the company in January 2024

Settlement Position: Each Defendant expressly and unequivocally denies that it engaged in any unlawful conduct asserted in the Action—including but not limited to subjecting any individual, group, or class of individuals to gender-based harassment, related retaliation, or gender discrimination. The parties agreed that the settlement was not an admission of guilt.

Settlement Breakdown: SEC, EEOC, and California CRD Agreements

EEOC Settlement ($18 Million): The consent decree includes $18 million in monetary relief and significant injunctive relief covering all U.S. locations of Activision Blizzard, Blizzard Entertainment, Activision Publishing and King.com. Individuals who were employed from Sept. 1, 2016 to the present and experienced sexual harassment, pregnancy discrimination, or related retaliation, are encouraged to make a claim.

California CRD Settlement ($54 Million): Activision Blizzard will pay approximately $54,875,000 to cover direct relief to workers and litigation costs, with approximately $45,750,000 going to a settlement fund dedicated to compensating workers.

Distribution Details:

Each Covered Individual will receive a standard minimum payment as well as an additional payment based on the length of time they worked for Defendants during the class period
Settlement administrator anticipated sending Notice and settlement checks on or shortly after October 11, 2024
The enclosed check expires 180 days from the date of the check, and must be cashed within that time

Additional Requirements:

Activision Blizzard must distribute any excess settlement funds to charitable organizations focused on advancing women in the video game and technology industries
Retain an independent consultant to evaluate and make recommendations regarding Activision Blizzard’s compensation and promotion policies and training materials
Continue efforts regarding inclusion of qualified candidates from underrepresented communities in outreach, recruitment, and retention

Harassment Claims Withdrawn: The CRD expressly acknowledged in the agreement that ‘no court or independent investigation has substantiated any allegations that there has been systemic or widespread sexual harassment at Activision Blizzard’. CRD is filing a second amended complaint that withdraws the fifth cause of action – ’employment discrimination – because of sex – harassment’.

Workplace Protections for Discrimination and Harassment Victims

Federal Protections: Title VII of the Civil Rights Act of 1964 prohibits employment discrimination based on sex, including sexual harassment and pregnancy discrimination. Employees can file complaints with the EEOC, which investigates and may pursue litigation on behalf of workers.

California State Protections: California’s equal pay law requires equal pay for substantially similar work, and FEHA imposes strict liability for certain types of harassment, with FEHA not imposing limitations on an employee’s recovery and extending protections broadly.

Key Employee Rights:

File complaints with state and federal agencies without retaliation
Receive equal pay for substantially similar work
Work in an environment free from harassment and discrimination
Report violations without fear of retaliation
Seek back pay, damages, and injunctive relief

Sexual harassment is considered a type of unlawful sex discrimination when it is pervasive enough to create a hostile working environment. Employers must take reasonable steps to prevent discrimination and harassment.

Legal Consequences and Ongoing Litigation

Financial Impact: Combined settlements exceed $72 million when including both EEOC and California CRD agreements, representing one of the largest workplace discrimination settlements in gaming industry history.

Reputational Damage: Activision Blizzard faced public backlash, including employee walkouts and petitions criticizing its response to the lawsuit, contributing to a decline in the company’s stock price.

Microsoft Acquisition Context: Microsoft acquired Activision Blizzard for $68.7 billion, with the acquisition completed on October 13, 2023. Microsoft CEO Satya Nadella said “The culture of our organization is my number one priority,” noting it’s critical for Activision Blizzard to drive forward on its commitments to improve workplace culture.

Securities Litigation: A class action lawsuit was filed on behalf of purchasers of Activision Blizzard securities between August 4, 2016 and July 27, 2021, alleging defendants failed to disclose that Activision Blizzard discriminated against women and minority employees and fostered a pervasive “frat boy” workplace culture.

How Blizzard’s Policies Have Changed

Injunctive Relief Requirements: Under the EEOC settlement, Activision Blizzard agreed to:

Provide anti-harassment and anti-discrimination training that includes bystander intervention and civility, with consultants reviewing content and effectiveness
Provide that human resources personnel will attend training designed for HR investigations
Evaluate their disciplinary framework and protocols to ensure actions lead to effective corrective and preventative measures
Implement a performance review system for managers, supervisors, and human resources personnel that includes an EEO component
Expand mental health counseling services available to employees who have experienced sexual harassment at any time
Create a centralized tracking system for complaints of discrimination and harassment
Establish a toll-free hotline for employees and staffing agency workers to report complaints, even anonymously, monitored 24/7
Create an internal EEO coordinator position to work with the EEO consultant to ensure compliance

What This Means for the Gaming Industry

The Blizzard class action lawsuit represents a watershed moment for workplace accountability in gaming. The case has prompted:

Industry-Wide Scrutiny: Gaming companies face increased pressure to address workplace culture, with employees at other studios emboldened to speak out about discrimination and harassment.

Policy Changes: Major publishers are implementing stronger anti-harassment policies, improving complaint processes, and conducting workplace culture audits.

Legal Precedent: The substantial settlement amounts signal that gaming companies face significant financial and reputational consequences for failing to address workplace misconduct.

Employee Empowerment: DFEH’s lawsuit triggered a separate class action lawsuit by Activision Blizzard’s shareholders at the federal level, demonstrating how workplace discrimination claims can expose companies to multiple forms of liability.

What Happens Next: Ongoing Cases and Potential Outcomes

Settlement Implementation: Women who worked as employees or contractors through temporary staffing agencies for an Activision Blizzard company in California between Oct. 12, 2015, and Dec. 31, 2020 are being offered shares of the $45.75 million settlement. Eligible individuals received notices and settlement checks beginning in late 2024.

Ongoing Oversight: Independent consultants will monitor Activision Blizzard’s compliance with settlement terms, evaluating compensation practices, promotion policies, and workplace training effectiveness.

Microsoft Integration: Following shareholder approval of the acquisition, the merger was reviewed by several national anti-trust bodies, with approvals granted by the European Commission and other regulators. Microsoft committed to addressing workplace culture issues as part of the acquisition integration.

Industry Impact: The case continues to influence gaming industry practices, with companies implementing stronger protections for employees and facing heightened scrutiny of workplace policies.

Frequently Asked Questions

What is the Blizzard class action lawsuit about?

The lawsuit alleges systemic workplace discrimination, sexual harassment, and retaliation against women employees at Blizzard Entertainment and Activision Blizzard companies. California regulators claimed the company fostered a “frat boy” culture with pay discrimination, harassment, and barriers to promotion for women.

How much is the Blizzard lawsuit settlement?

California reached a $54 million settlement, with approximately $45.75 million going directly to affected women employees and contractors. The EEOC separately settled for $18 million. Combined settlements exceed $72 million.

Who is eligible for the Blizzard settlement?

Women who worked as employees or temporary staffing agency contractors for Activision Blizzard companies in California between October 12, 2015 and December 31, 2020 are eligible for compensation from the California settlement.

Did Blizzard admit wrongdoing?

No. Blizzard expressly denied all allegations and the settlement specifically states it is not an admission of guilt. However, the company agreed to implement extensive workplace reforms and pay substantial damages.

What workplace protections exist for gaming industry employees?

Employees are protected by Title VII of the Civil Rights Act (federal) and state laws like California’s Fair Employment and Housing Act. These laws prohibit discrimination, harassment, and retaliation. Employees can file complaints with the EEOC or state agencies without fear of retaliation.

Has Microsoft changed Blizzard’s workplace culture?

Microsoft acquired Activision Blizzard in October 2023 and committed to addressing workplace culture. Microsoft CEO Satya Nadella stated culture is his “number one priority” for the acquisition. However, Microsoft also laid off 1,900 gaming division employees in January 2024 as part of post-acquisition restructuring.

Are there other lawsuits against Blizzard still pending?

The California CRD and EEOC cases have been settled. However, securities litigation related to the discrimination allegations may continue. Employees with claims outside the settlement’s timeframe (before October 12, 2015 or after December 31, 2020) retain the right to pursue individual legal action.

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About the Author

Sarah Klein, JD, is a licensed attorney and legal content strategist with over 12 years of experience across civil, criminal, family, and regulatory law. At All About Lawyer, she covers a wide range of legal topics — from high-profile lawsuits and courtroom stories to state traffic laws and everyday legal questions — all with a focus on accuracy, clarity, and public understanding.
Her writing blends real legal insight with plain-English explanations, helping readers stay informed and legally aware.
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Blizzard Class Action Lawsuit, Inside the $54 Million “Frat Boy Culture” Settlement That Rocked Gaming