Judge reportedly approves $100M settlement for Riot gender discrimination lawsuit

RiotGames’ settlement of $100 million for gender-based discrimination has been reportedly approved by a California court.

Melanie McCracken and Jess Negrón, two former Riot employees, filed the case in November 2018 accusing Riot Games of sexual harassment and gender discrimination. In 2019, Riot Games agreed to pay $10 million to settle the lawsuit, but the California Department of Fair Employment and Housing (DFEH) filed a court document to prevent the settlement. DFEH stated that victims should be eligible for as much as $400 million in the filing.

 

 

However, after many twists and roadblocks, the lawsuit finally seems to be nearing its end after a California judge reportedly gave the $100 million settlement his preliminary approval. Riot will pay about $20 million in legal fees and approximately $80 million to the members of the class-action lawsuit, a report by Axios states.

The current and former California women employees and contractors who worked at Riot Games between November 2014 till the present day are eligible for the settlement payout. The $80 million would be split among over 2300 employees, with those who have worked for the company the longest receiving the largest share.

The next step of the process is unclear, but eligible employees will begin to receive notifications in August and will have until October to opt out, according to the report. As part of the settlement, Riot Games also agreed to put into practice a regulation allowing the presence of a woman or a member from an underrepresented community on job screening panels.

A third party would also keep a watch on Riot Games for three years. The third party will handle human resource issues and make sure that both genders are paid fairly. Furthermore, the third party must be approved by both Riot and the DFEH. Riot will also make sure that there is greater transparency on employee salaries and pay scales with the third party. The settlement mandates that Riot Games carry out the modifications suggested by the third party, which could be an individual or an organization. Judge Elihu M. Berle, who is presiding over the case, has the authority to put the modifications into action.

More legal hiccup for Riot

Even though the 2018 case is now in its closing stages, Riot is still facing a harassment and discrimination lawsuit filed against them in 2021. On Jan. 7, Nicolas “Nicolo” Laurent CEO of Riot was sued by a former executive assistant, Sharon O’Donnell, who alleged misconduct and unwanted physical approach.

Riot Games had denied those allegations, allowing Nicolo to continue as CEO of the studio. According to the organization, a third-party investigation commissioned by the studio found no evidence against Nicolas. Regardless of the outcome, Riot’s reputation has been tarnished by the lawsuits, adding it to the list of organizations supporting toxic and sexist culture.

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