Things are about to get messy when it comes to the state of Sports betting site B Sports California’s lawsuit against Activision Blizzard, with a federal agency accusing lawyers leading the state’s case of ethical violations that could potentially be against state law.
Back in July, the California Department of Fair Employment and Housing (DFEH) sued Activision Blizzard, citing widespread sexual harassment and discrimination. Subsequent investigations emerged, including a lawsuit from the Federal Equal Employment Opportunity Commission (EEOC). That lawsuit was swiftly settled, with Activision Blizzard agreeing to pay out $18 million in a settlement to make amends to victims. Any money that remains unclaimed by victims will be donated to relevant charities.
The DFEH, however, is legally objecting to the settlement, saying it could potentially damage its case, as the settlement may lead to the sealing, destruction, or tampering of evidence critical to the state’s investigation.
Now, the EEOC is taking issue with the DFEH’s objection, in the process alleging that the DFEH may have committed some major ethical violations. As explained by PC Gamer, the issue is that the two lawyers leading the state’s case appear to have previously worked for the EEOC. Not only that, but the lawyers actually worked on the EEOC investigation of Activision Blizzard itself, which led to the same settlement the DFEH now opposes. As explained in the EEOC’s memorandum on the issue:
“Specifically, two DFEH attorney–who play leadership roles within the organization–previously served as EEOC who helped to direct the EEOC’s investigation into Commissioner’s Charge No. 480-2018-05212 against Activision Blizzard, Inc. These same attorneys then proceeded to represent DFEH in connection with these intervention proceedings, which seek to oppose the consent decree that arose out of the very investigation they helped to direct while at the EEOC.”
If true, it would be a breach of California Rules of Professional Conduct. As explained by lawyer Andrew Torrez, host of the Opening Arguments podcast, the California Rules of Professional Conduct explicitly prohibits former governmental employees from “represent[ing] a client in connection with a matter in which the lawyer participated personally and substantially as a public official or employee.” And as pointed out by lawyer Richard Hoeg, it’s a pretty big deal.