Activision Blizzard lacked proper controls, resulting in insufficient information for investors. Agreed to penalty without admitting guilt.

If you think compliance is expensive, try non-compliance.” former U.S. Deputy Attorney General Paul McNulty.

Summary

The video game company, Activision Blizzard, has agreed to pay $35 million to settle charges with the Securities and Exchange Commission (SEC).

The charges were for failing to keep proper records and assess its workforce disclosure, as well as violating SEC whistleblower protection rules.

The company did not properly collect and analyze employee complaints about workplace misconduct, which resulted in management not having enough information to determine if any material issues required public disclosure.

Also, Activision Blizzard made former employees sign agreements that prevented them from communicating directly with the SEC about potential securities law violations.

The company will stop these actions and pay a $35 million fine, but does not have to admit to any wrongdoing.