Activision Blizzard Settles $35M SEC Allegations for Mishandling Workplace Complaints and Violating Whistleblower Protection.

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Activision Blizzard ($NASDAQ:ATVI) is a multinational video game developer and publisher that is headquartered in Santa Monica, California. The company produces some of the most popular and well-known franchises in gaming, including Call of Duty, World of Warcraft, Diablo, and Overwatch. On Friday, the Securities and Exchange Commission announced that Activision Blizzard had agreed to pay $35 million to settle allegations that it had mishandled workplace complaints and violated whistleblower protection rules. The SEC said that between 2018 and 2021, Activision Blizzard was aware of the risk posed by its failure to properly deal with employee grievances, but did not put in place sufficient controls to address the issue.

Additionally, the company was found to have violated a whistleblower protection rule between 2016 and 2021, which required former employees to inform the SEC’s staff if they received a request for testimony or documents. The company also agreed to provide appropriate training to its employees and to update its compliance policies and procedures. Further, Activision Blizzard accepted responsibility for its violations and agreed to cooperate with the SEC’s staff during the investigation. The settlement highlights the importance of companies taking appropriate measures to ensure that their employees are given a safe and respectful environment in which to work. It also serves as a reminder of the need for companies to comply with federal regulations pertaining to whistleblower protection.

Share Price

Activision Blizzard, one of the world’s largest gaming and entertainment companies, recently settled with the U.S. Securities and Exchange Commission (SEC) in a $35 million allegation of mishandling workplace complaints and violating whistleblower protection. At the time of writing, media sentiment towards the company is mostly negative. On Friday, the company’s stock opened at $76.6 and closed at $75.2, a 2.4% decrease from its previous closing price of $77.1. The agreement was reached due to the SEC’s allegations that Activision Blizzard had “failed to properly investigate employees’ complaints about potential violations of law and company policy” and failed to protect whistleblowers who had reported concerns to the SEC.

The company admitted no wrongdoing as part of the settlement and clarified that it had “taken significant actions to enhance its compliance program and procedures related to the handling of employee complaints and protection of whistleblowers.” Activision Blizzard has stated that it is committed to fostering an environment where all employees are respected and can voice their concerns without fear of retaliation. To that end, the company has taken steps to ensure its compliance policies are up to date and that it has a robust system for handling employee complaints in an effective and fair manner. Live Quote…

About the Company

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Analysis

ACTIVISION BLIZZARD‘s financials can be analyzed with the help of GoodWhale, a financial data analysis platform. GoodWhale has categorized ACTIVISION BLIZZARD as a medium risk investment in terms of financial and business aspects. This assessment is based on the company’s risk rating which is an aggregate of several factors including asset performance, profitability, liquidity, and leverage. GoodWhale has also identified two risk warnings in ACTIVISION BLIZZARD’s income statement and balance sheet. These warnings are related to the company’s current assets, working capital, and debt service coverage. To access more detailed information about these risk warnings, users need to register with GoodWhale. In addition to risk assessment, GoodWhale also provides users with company’s financial ratios such as return on equity, return on assets, and debt to equity for more in-depth analysis. It also provides users with peer comparisons of the company’s financial performance, which can be used to assess the relative performance of the company against its competitors. Overall, GoodWhale is an excellent tool for investors to analyze ACTIVISION BLIZZARD’s financials and gain insight into the company’s current financial health. With its comprehensive data analysis capabilities, GoodWhale enables investors to make informed decisions about their investments in the company. More…

Peers

The company has a strong portfolio of video game franchises and continues to innovate in the gaming space. While its competitors are also strong in the gaming industry, Activision Blizzard has a history of success and a bright future.

– Take-Two Interactive Software Inc ($NASDAQ:TTWO)

Take-Two Interactive Software, Inc. is a holding company, which engages in the provision of entertainment products and services. It operates through the following segments: Publishing, Distribution, and Other. The Publishing segment refers to the development, marketing, and sale of software products and content through physical retail, digital download, online platforms, and cloud streaming services. The Distribution segment comprises of the third-party distribution of physical retail products and digital downloads of games and add-on content. The Other segment covers licensing and management fees, royalties, and other non-operating income. The company was founded by Ryan Brant and Jeffrey D. Lapin on September 24, 1993 and is headquartered in New York, NY.

– Electronic Arts Inc ($NASDAQ:EA)

Electronic Arts Inc is a leading global interactive entertainment software company. The Company develops, publishes, and distributes interactive software worldwide for video game systems, personal computers, cellular handsets and the Internet.

As of 2022, Electronic Arts Inc has a market cap of 35.66B and a Return on Equity of 10.3%. The company is a leading global interactive entertainment software company and develops, publishes, and distributes interactive software worldwide for video game systems, personal computers, cellular handsets and the Internet.

Summary

Activision Blizzard, a leading global developer and publisher of interactive entertainment, has recently settled with the U.S. Securities and Exchange Commission (SEC) over mishandling of workplace complaints and violating whistleblower protection. The settlement amount is $35 million. Investors should consider the potential impact of this settlement on the company’s future.

Activision Blizzard’s stock has been volatile since the news was announced, so investors should exercise caution when investing in the company. Furthermore, investors should investigate the company’s history and policies on workplace complaints and whistleblower protection to determine if it meets their expectations for a sound investment.