We all saw this coming - after a recent spat between the Department for Employment and Housing and Equal Employment Opportunity Commission surrounding their concurrent lawsuits against Activision-Blizzard revealed ethics violations on the part of the former, the company tried using this to wiggle out of the entire situation. Luckily, the court was having none of it.
LA County judge Timothy Patrick Dillon recently rejected Activision-Blizzard's appeal to stay the lawsuit, without any explanation given. The decision was given quite swiftly after the company pounced on the opportunity that seemed like a chance to have the lawsuit dismissed due to the actions of two DFEH lawyers.
The ethics violation in question came to light after the EEOC filed its own lawsuit against the company while the DFEH's sexual harassment lawsuit was on-going. Activision-Blizzard immediately went for a $18 million settlement with the EEOC, intent on avoiding a two front war, which the federal agency accepted. The issue was that as part of the settlement, the company would be allowed to destroy evidence - evidence potentially important to the DFEH case as well.
When the DFEH objected to this and tried to block the settlement legally, the two agencies found themselves at an impasse - this is when the EEOC rolled out proof of a conflict of interest, seeing as the DFEH investigation was led by two lawyers who previously worked for the EEOC; more importantly they directly worked on the Activision-Blizzard settlement that they now opposed.