J. Allen Brack And Head Of HR Jesse Meschuk Leave Activision Blizzard Amid Controversial Lawsuit

Blizzard Entertainment President J. Allen Brack has left the company “to pursue new opportunities” amid the controversial sexual harassment and discrimination lawsuit filed against Activision Blizzard by the state of California. The announcement was made in a press release welcoming Jen Oneal and Mike Ybarra as the new co-leaders of the company the morning of yesterday’s Q2 2021 investor report.

“I am pleased to announce that, effective immediately, Jen Oneal and Mike Ybarra have been appointed co-leaders of Blizzard. Jen and Mike will share responsibility for development and operational accountability for the company,” said Activision Blizzard. “Both are leaders of great character and integrity and are deeply committed to ensuring our workplace is the most inspired, welcoming environment for creative excellence and to upholding our highest game development standards.”

Activision Blizzard’s Senior Vice President of Global Human Resources, Jesse Meschuk, has also voluntarily left the company over claims that HR personnel were close to the alleged harassers and that the department itself was complicit in incidents of sexual harassment. Victims said they were discouraged from filing complaints and were largely ignored. Photographs of the “Cosby Suite” also allegedly included an employee from the HR department.

Meanwhile, things continue to pile up for Activision Blizzard as Gary Cheng, a company shareholder, files a class-action lawsuit against the company for misleading investors and failing to fully disclose the Department of Fair Employment and Housing’s investigation into the alleged frat boy culture within the company. Here’s an excerpt from the lawsuit:

“Defendants made false and/or misleading statements and/or failed to disclose that: (1) Activision Blizzard discriminated against women and minority employees; (2) Activision Blizzard fostered a pervasive “frat boy” workplace culture that continues to thrive; (3) numerous complaints about unlawful harassment, discrimination, and retaliation were made to human resources (“HR”) personnel and executives which went unaddressed; (4) the pervasive culture of harassment, discrimination, and retaliation would result in serious impairments to Activision Blizzard’s operations; (5) as a result as a result of the foregoing, the Company was at greater risk of regulatory and legal scrutiny and enforcement, including that which would have a material adverse effect; (6) Activision Blizzard failed to inform shareholders that the California Department of Fair Employment and Housing (“DFEH”) had been investigating Activision Blizzard for harassment and discrimination; and (7) as a result, Defendants’ statements about Activision Blizzard’s business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.”

ATVI’s stock has also dropped 14% in the past six months, with stock prices seeing a significant dip in the past few weeks.