LOS ANGELES (AP) - Activision Blizzard, the video game maker behind popular titles like Call of Duty and Overwatch, has agreed to pay approximately $54 million to settle discrimination claims brought by California's civil rights agency on behalf of women employees.

The settlement, still pending court approval, aims to resolve allegations of gender-based discrimination at the company. The California Civil Rights Department announced late Friday that the claims included denial of promotion opportunities and unequal pay for women employees performing similar work.

Activision Blizzard faced a decline in its stock price in 2021, partly stemming from the allegations of workplace discrimination. This decline ultimately led to Microsoft's January 2022 takeover bid, resulting in a $69 billion acquisition deal. Despite facing opposition from antitrust regulators and competitors, Microsoft successfully completed the purchase in October.

The lawsuit filed by California's civil rights agency in July 2021 accused Activision Blizzard of tolerating a culture of constant sexual harassment against female employees. It also highlighted a lack of women in leadership positions and disparities in salary, incentive pay, and total compensation when compared to their male counterparts.

Employee backlash ensued, with workers speaking out against the company's defensive response to the lawsuit and staging a walkout. Numerous petitions were signed criticizing Activision Blizzard's handling of the allegations.

The settlement terms indicate that women who worked for the company between October 12, 2015, and December 31, 2020, whether as employees or independent contractors, may be eligible for compensation. The state agency states that approximately $45.75 million of the settlement amount will be allocated for such payouts.

In addition to the monetary settlement, Activision Blizzard has agreed to take measures to ensure fair pay and promotion practices within the company. In a statement on Saturday, the company expressed its commitment to implementing the newly established obligations.

It is noteworthy that the California Civil Rights Department has agreed to withdraw sexual harassment allegations by filing an amended complaint as part of the settlement agreement. The agreement explicitly states that no court or independent investigation has substantiated claims of systemic or widespread sexual harassment within Activision Blizzard. It also asserts that the company's board of directors and CEO did not act improperly or tolerate a culture of harassment, retaliation, or discrimination.

This settlement follows Activision Blizzard's previous agreements to resolve sexual harassment and discrimination claims brought by the U.S. Equal Employment Opportunity Commission, resulting in the creation of an $18 million compensation fund in September 2021. The company also settled Securities and Exchange Commission charges earlier this year, paying $35 million for violations related to workplace complaints and whistleblower protection.

The settlement between Activision Blizzard and the California civil rights agency marks a significant development in addressing the allegations of discrimination that have plagued the company. It remains to be seen how this settlement will impact the culture and practices within the video game industry moving forward.

[Word Count: 465]