They may intend to take this all the way to the Supreme Court, and with the court's current composition, there's an excellent chance they win and even get the underlying statute neutered or struck down.
That’s not how this stuff works at all. This is a dispute over the facts, and how much money the facts are worth, and to whom. Someone in California DOJ had a 15 minute meeting with their people and ATVI people and already decided that ATVI is going to face a fine to be paid to its female complainant former employees, the next three years of lawsuit is a ceremony enacting that.
Does Activision have backup studios in "developing countries" or other clever plans?