Nov 21, 2024

Riot Games Settles $100 Million Gender Discrimination Lawsuit

by Nadia El-Yaouti | Apr 11, 2022
A smartphone displaying the Riot Games logo, partially hidden in a denim pocket. Photo Source: Adobe Stock Image

The popular gaming company Riot Games has announced that it will pay $100 million to settle a 2018 class-action discrimination lawsuit with California state agencies and current female employees.

The settlement is with the California Division of Labor Standards Enforcement (DLSE) and the California Department of Fair Employment and Housing (DFEH). As part of the lawsuit, Riot Games will pay members of the class-action lawsuit $80 million, and about $20 million will go toward the plaintiffs’ legal fees.

The November 2018 lawsuit came about after former employees alleged that they faced sexual harassment and misconduct as well as gender discrimination in the workplace. The suit was filed by Melanie McCracken and Jess Negrón and originated after an expose done by Kotaku, a gaming news site, dived into allegations of the company’s sexist culture. The exposé collected stories from at least 28 current and former employees who detailed their experience with sexism while working for the gaming company. Kotaku’s article also detailed that some former employees did not come forward with their own experiences because they signed a non-disclosure agreement with the company.

As a result of the exposé, Riot Games responded to allegations of sexism by creating a diversity and inclusion page on their website. In addition, they shared a statement that explained, “We aggressively enforce a zero-tolerance policy on discrimination, harassment, and general toxicity. It is incredibly important that our leaders embody this commitment, and reinforce this expectation across their teams.”

After the lawsuit was filed, two inquiries were brought forward by California’s DLSE and DFEH. In the complaint, there are details of female workers receiving unwanted sexual advances during their time with the company. Additionally, the complaint details that gender discrimination was a problem because female employees were often looked over for job promotions despite having the same qualifications if not more than their male counterparts.

Despite Riot Games maintaining that they had a climate that was free of discrimination of any sort, the company agreed to settle the suit in 2019 for $10 million. However, California’s DFEH stepped in with a court filing to block the agreement. In their filing, they pushed back saying that the victims were entitled to as much as $400 million.

With this new settlement, at least 2,300 workers will be able to claim a piece of the $80 million payout. Payouts for qualifying victims will be determined based on how long the individual worked at Riot games.

As part of the settlement, Riot Games has also agreed to put into place different workplace policies that would require greater transparency about pay scales for different positions. The company has also agreed to implement a new policy that would require a female or member of an under-represented group to sit in on hiring processes and employment selection panels. A third party will also come in to examine policies and operations at the company. The third party will be in charge of looking over complaints made to the human resource department, whether employees of all genders are being treated equally, and whether they are being paid equally. Both DFEH and Riot Games will have a say on who the third party brought in will be.

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Nadia El-Yaouti
Nadia El-Yaouti
Nadia El-Yaouti is a postgraduate from James Madison University, where she studied English and Education. Residing in Central Virginia with her husband and two young daughters, she balances her workaholic tendencies with a passion for travel, exploring the world with her family.

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