The publisher of franchises such as Call of Duty, Warcraft and Diablo could be in further trouble over allegations of discrimination and harassment at Activision Blizzard and how it handled them.
The Securities and Exchange Commission (SEC) in the United States has now initiated an investigation of its own, including issuing subpoenas against Bobby Kotick, the CEO of the company and several executives.
The body wishes to clarify the responsibility of the CEO and board of directors regarding events that have taken place at Activision Blizzard in recent years, in which sexual harassment, toxicity and abuse have prevailed.
The SEC has asked that documents such as recordings and minutes of meetings be turned over so the body can draw its own conclusions.
The SEC's aim is to determine if the company's top brass -- Kotick and the board of directors -- failed to inform investors of the facts surrounding ongoing cases.
Should the SEC determine the defendants knew about defrauded investors by hiding cases of harassment and toxic environment that have been emerging in recent months, the penalties could be huge. It must also be noted that several shareholders in Activision Blizzard have sued the firm for hiding such serious matters.
Activision Blizzard have stated that the company is carrying out a series of changes in order to improve their policies, in order to avoid discrimination or harassment in the future.
While the company has denied many of the accusations, the lawsuit brings forward cases of harassment, abuse and even suicide
