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Activision's Kotick Loses Legal Fight with Former Attorney Stemming From Sexual Harassment Suit

Posted August 2, 2010 by James Brightman

In one of the stranger news items we came across today, it's been discovered that Activision Blizzard boss Bobby Kotick has lost a legal battle against Patricia Glaser, who has been described by California Lawyer magazine as "one of the fiercest litigators in Los Angeles.” The news, unfortunately for Kotick, only serves to reinforce the negative perception that many gamers and industry watchers have of the CEO.

The suit actually stems from a separate legal mashup that involved a flight attendant named Cynthia Madvig, who filed in Los Angeles County Superior Court against pilot Phil Berg, Kotick, Andrew Gordon, the head of Goldman Sachs & Co.’s investment banking division in Los Angeles, and Cove Management, a company that Kotick and Gordon had created to manage a Gulfstream III private jet they jointly owned. 

As the Los Angeles Times explains:

Madvig, who worked as a flight attendant on the jet, claimed that Berg had pressured her in 2006 to be his “arm candy” by accompanying him to dinners and outings during layovers. When she refused, Berg “set out to make life miserable for Madvig,” she alleged. The lawsuit said that Berg compelled her to clean the plane’s toilets repeatedly while “leering” at her.

Madvig claimed that she reported the incidents to Gordon, but did not get a response. Two months later, Kotick fired her. By way of explanation, Kotick allegedly told Madvig, “The guys are unhappy with the hostile environment.”

She filed suit two months later in January 2007 for sexual harassment, wrongful termination, failure to prevent sexual harassment and retaliating against her when she reported the harassment, among other things. The suit did not name Activision Blizzard, the publisher of such hit games as Call of Duty and World of Warcraft.

Kotick had hired Glaser's law firm to help him with the case, but eventually he switched firms and there was a dispute between Kotick/Gordon and Glaser about legal fees. Ultimately, Madvig was able to settle with Kotick, Gordon, Cove and Berg, snagging $200,000, plus $475,000 in legal fees, and Glaser won her case, ultimately forcing Kotick and Gordon to pay $1.42 million and 10% interest.

James Brightman has been covering the games industry since 2003 and has been an avid gamer ever since the days of Atari and Intellivision. He was previously the EIC of GameDaily Biz.