Activision agrees to pay harassment victims in face of lawsuit

Activision Blizzard Inc., the videogame giant, agreed to create an $18 million fund for alleged victims of discrimination or harassment after it was sued by the U.S. Equal Employment Opportunity Commission over its workplace practices.

The company also announced in a statement Monday the creation of an initiative to develop software tools and training programs to improve workplace policies and practices for employers across the technology industry.

Activision Blizzard, which makes games like "Call of Duty" and "World of Warcraft," has been embroiled in controversy over its treatment of employees.

California's Department of Fair Employment and Housing sued Activision in July, alleging the company fostered a "frat boy" culture in which female employees were subjected to sexual harassment, pay inequality and retaliation. Days later, an employee walkout drew hundreds of demonstrators to the sidewalks of the company's corporate campus in Southern California.