Davis Polk on When Gaming Runs Afoul of Disclosure Controls and Whistleblower Rights

On February 3, the SEC announced a $35 million settlement with Activision Blizzard stemming from the company’s alleged failure to maintain adequate disclosure controls and procedures relating to workplace misconduct complaints and for a violation of a whistleblower protection rule.

In its periodic filings with the SEC between 2018 and 2021, Activision included risk disclosures relating to its dependence on personnel with specialized skills and the high level of employee mobility and competitive pressures in the gaming industry. According to the order, during that same timeframe, Activision “lacked controls and procedures designed to ensure that information related to employee complaints … Read more