Activision Blizzard will pay $35 million to settle SEC charges over its handling of complaints
Activision Blizzard Settles with SEC for Whopping $35 Million!
So you may have heard the news that Activision Blizzard is settling charges with the Securities and Exchange Commission (SEC) by paying a hefty fee of $35 million. Seems like the game makers have gotten themselves into hot water and need a really big chill pill to calm the rage of the SEC.
The SEC’s investigation found that Activision Blizzard had failed to properly inform shareholders about a number of complaints they had received. Specifically, the company failed to:
- Adequately explain: The severity of the complaints that were filed by consumers.
- Properly disclose: How it dealt with those complaints.
It’s not surprising that the SEC was able to uncover these issues in their investigation as the language used in the company’s financials was found to be somewhat of an obfuscatory labyrinth rather than a language of clarity.
Scheduled To Pay
Activision Blizzard has seen its fair share of grand controversies in the past, surely this new fine will contribute to the downfall of their public opinion, not to mention their pocketbooks. The company is scheduled to pay the $35 million fine by the end of the year. Ouch!
The fun doesn’t stop there though, as the SEC has also ordered the company to review and update their disclosure standards and processes. Good luck Activision Blizzard!
Risk of Risky Business
So folks, here’s the moral of the story-dont’ be playing risky business when it comes to your financials. Poor disclosure of complaint handling can get your business in a world of hurt. Gaming giant Activision Blizzard just learned this the hard way- and with a $35 million price tag to boot!