Activision execs weigh defamation suit after California drops sex harass allegations

Executives at Activision Blizzard are weighing a possible countersuit against a California state agency that had claimed the gaming giant had a toxic “‘frat boy’ workplace” — only to drop its litigation last week, On The Money has learned.

The California Civil Rights Department, which had been investigating the company behind “Call of Duty” and “Candy Crush” since 2021, dropped its explosive allegations Friday. 

“No court or any independent investigation has substantiated … systemic or widespread sexual harassment,” the agency admitted in court papers last week.

California’s stunning admission also acknowledged there was no evidence that “senior executives ignored, condoned, or tolerated a culture of systemic, harassment, retaliation, or discrimination” and that neither the Activision board or CEO Bobby Kotick improperly handled complaints of misconduct.

Nevertheless, Activision still ended up paying a $54 million settlement — $47 million of which is going to alleged pay disparities — to settle the litigation.

“Reputationally the most important thing was for the agency to acknowledge there was no wrongdoing” when it came to harassment, a source close to Activision said.