(Reuters) – The US Securities and Exchange Commission is investigating Activision Blizzard's handling of employees' allegations of sexual misconduct and discrimination in the workplace, the Wall Street Journal reported on Monday, citing people familiar with the investigation and documents seen by it.
Shares in Santa Monica, California-based video game publisher fell 5.4% in afternoon trading.
The regulator has issued a lawsuit to the "Call of Duty" developer and its senior executives including CEO Bobby Kotick, the report said.
The company and the US Securities and Exchange Commission did not immediately respond to Reuters' request for comment. the company, which was followed by the company's then president Allen Brack resigns.
The California Anti-Discrimination Bureau has accused accomplice y of suppressing evidence of sexual harassment and prejudice against female workers, claiming that the company allowed a "frat boy" culture in its workplace.
The SEC has requested documents including minutes from Activision's board meetings since 201