Activision Blizzard, the parent company for a compendium of video game developers and publishers responsible for popular franchises such as Diablo, Call of Duty, and World of Warcraft, is now the target of a wide-reaching investigation instigated by the U.S. Securities and Exchange Commission (SEC). The SEC’s investigation follows a California Department of Fair Employment and Housing (DFEH) lawsuit filed in July. The legal actions concern allegations of widespread sexual harassment, abuse, and toxic behavior made public earlier this year.

The California DFEH’s lawsuit is based on allegations that Activision permitted a years-long pattern of workplace discrimination, harassment, and a general “frat boy” culture resulting in a hostile work environment for female employees. The DFEH claims the company’s conduct violated California’s civil rights and equal pay laws.

Since the announcement of the lawsuit, thousands of Activision employees have signed on to open letters supporting the DFEH’s actions and condemning the company’s response. The employees’ reactions were spurred in part by the initial reaction from the company’s chief compliance officer, who called the DFEH complaint “truly meritless and irresponsible.”

The complaint and investigative reports paint a troubling picture of harassment, pay discrimination, and corporate indifference to the issues. According to a report by Axios, for example, several current and former employees explained that they either did not trust HR to help when they were harassed or that their concerns were rebuffed and ignored when they did try to make a report.

One of the most troubling allegations demonstrating the company’s general “frat boy” tone and tenor concerns a convention hotel room used by company higher-ups. The complaint specifically names long-time World of Warcraft developer Alex Afrasiabi, alleging that, at an annual company convention known as BlizzCon he would “hit on female employees, telling [them] he wanted to marry them, attempting to kiss them, and putting his arms around them.” His conduct was so well-known that his hotel suite at BlizzCon was nicknamed “the Cosby Suite” after alleged rapist Bill Cosby. His suite was known as a hotspot for informal networking among people trying to rub elbows with higher-ups. Those company insiders embraced the nickname; photos surfaced of Afrasiabi and others posing with a literal photo of Bill Cosby while schmoozing in the suite.

A spokesperson for Activision confirmed the SEC’s investigation to the Wall Street Journal, explaining that the SEC is focused on “the company’s disclosures regarding employment matters and related issues.” The SEC has subpoenaed several current and former employees and officers of the company, including CEO Bobby Kotick. The SEC’s investigation will center on whether the company and its executives accurately, promptly, and properly disclosed allegations of workplace harassment, gender-pay concerns, and other issues to investors. Activision has already been hit with at least one shareholder class-action lawsuit alleging the corporation’s actions and omissions caused the company’s share price to tank, harming investors.

The lawsuits and investigations have led to significant internal shakeups and departures. Blizzard Entertainment, the corporation’s game development and publishing subsidiary, just saw its chief legal officer resign amid the legal actions. Clair Hart left Blizzard Entertainment on September 17, 2021, after only three years, following a decade-long stint at Google.

Hart is only the latest Blizzard executive to depart over the last few months: Blizzard Entertainment’s president J. Allen Brack stepped down in early August, followed by Head of HR Jesse Meschuk. Shortly thereafter, both the lead designer, Luis Barriga, and the game director, Jesse McCree, for Blizzard’s major upcoming project Diablo 4 were let go, as was Jonathan LeCraft, the designer for one of Blizzard’s long-time mainstays, World of Warcraft. Several of these individuals were identified in a photo taken in the infamous “Cosby Suite.”