Courtesy photo SEC's Activision Smackdown Over 'Risk Factors' Reverberating Through Legal Departments
The agency found that when the video-game maker identified employee hiring and retention as a risk, that triggered a requirement that it put controls in place to assess the volume and nature of workplace complaints.
March 09, 2023 at 09:55 AM
5 minute read
The U.S. Securities and Exchange Commission is putting legal departments on alert that when they disclose something as a "risk factor" in regulatory filings, they need to have internal controls in place monitoring it.
The warning came in the form of the SEC's $35 million settlement last month with Activision Blizzard, which faced complaints of widespread worker harassment.
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