Shareholders claim gaming giant Activision Blizzard Inc. has harmed investors by failing to disclose that a California agency was investigating the company for harassment and discrimination.

Activision Blizzard, the developer of World of Warcraft, Call of Duty and Candy Crush, has faced employee walkouts and the resignation of one of its executives following a lawsuit from California’s Department of Fair Employment and Housing alleging that the company fostered a “frat boy” workplace culture. In a proposed class action filed Tuesday by The Rosen Law Firm in Los Angeles, investors claim that they have suffered significant losses and damages due to plummeting market values after the lawsuit presented numerous complaints of harassment and discrimination, including one report of an employee who died by suicide on a trip with her male supervisor after her nude photographs were distributed at a holiday party, according to the suit.