Activision Blizzard Inventory Drops as Employees Reject Response to Sexual Harassment Lawsuit

Activision Blizzard Inc. ATVI,
Shares fell Tuesday after reports that many employees disagree with the company’s response to a California lawsuit over sexual discrimination and harassment at the video game publisher. Activision Blizzard shares fell more than 7% in Tuesday’s trading. Last week, the California Department of Fair Employment and Housing filed a civil suit against Activision Blizzard, alleging that female employees were discriminated against over pay and promotions, as well as sexual harassment. Afterward, Activision released a statement that the suit was “distorted and in many cases contained false descriptions of Blizzard’s past.” According to media reports, more than 2,000 current and former employees have signed a letter rejecting the company’s response to the lawsuit. On Twitter, World of Warcraft Senior System Designer Jeff Hamilton said: “almost no work” is done to the game due to the controversy. Activision Blizzard has not yet responded to MarketWatch’s request for comment on the petition.