Activision Blizzard Inc. said an executive named in a gender-bias lawsuit filed against the company last month by California regulators is leaving the videogame company.

J. Allen Brack is immediately stepping down from his role as president of Blizzard Entertainment, the unit behind hit franchises such as World of Warcraft and Overwatch, the company said Tuesday. Two company veterans, Jen Oneal and Mike Ybarra, were named co-leaders of the unit, which it acquired in 2008.

“It became clear to J. Allen Brack and Activision Blizzard leadership that Blizzard Entertainment needs a new direction and leadership given the critical work ahead in terms of workplace culture, game development, and innovation,” the company said in a statement.

Mr. Brack didn’t immediately respond to a request for comment. In a statement on Blizzard’s website, Mr. Brack said he is confident in his replacements’ ability to lead the company “with the highest levels of integrity and commitment to the components of our culture that make Blizzard so special.”

Shares of Activision are trading down about 5% Tuesday and have fallen nearly 14% since the suit was filed on July 20. The company is slated to report its second-quarter earnings results after market close.

This post first appeared on wsj.com

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