Riot Games to pay $100 million in gender-based harassment suit

Los Angeles, California - After years in court, women previously and currently employed at gaming studio Riot Games will finally see a shred of justice, in the form of millions of dollars in a massive settlement payment.

Riot Games will pay 10 times more than their 2019 settlement offer of $10 million.
Riot Games will pay 10 times more than their 2019 settlement offer of $10 million.  © Collage: IMAGO / Panthermedia, Riot Games

Riot Games, the studio behind massively popular battle arena game League of Legends and the surprise hit show Arcane, will pay out $100 million to settle a gender-based harassment class-action lawsuit that started in 2018, according to The Washington Post.

The class-action suit was started after a special report from Kotaku took a closer look at the sexist work culture at the games studio. In the report, Cecilia D'Anastasio listed female employees' bad experiences within the company, like having their project rejected, only to see them accepted when a man presented the same ideas, or leads sharing which employees they would sleep with.

For some women, it was like "working at a giant fraternity."

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In 2019, Riot Games was prepared to settle for only $10 million, but California's Department of Fair Employment and Housing stepped in, and told the court that the settlement should be worth up to $400 million.

In the end, Riot settled for 10 times more than expected, and the DFEH issued a statement December 27 to acknowledge the settlement agreement.

After legal fees, there are $80 million left to pay out to over 2,300 employees and contractors who worked at Riot Games between November 2014 and the present day.

Settlement terms

A third party will keep a sharp eye on Riot for the next three years.
A third party will keep a sharp eye on Riot for the next three years.  © Collage: IMAGO / McPHOTO, Riot Games

The settlement isn't just a large payout to employees. It also requires Riot Games to reform some of its workplace policies.

Job applicants can expect more clarity and transparency about pay scales, more fairness when they negotiate their salaries and receive job titles, as well as a plan to hire former and current contractors to work at Riot. The settlement also requires the games studio to include at least one woman or someone from an underrepresented group when hiring new employees.

To make sure that the studio delivers on its settlement promises, a third party is on watchdog duty for three years, and will keep an eye on employee complaints, how those complaints are dealt with, as well as fair salaries for all genders.

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The observer still needs to be agreed upon by Riot and the DFEH, and once they are approved, the person or organization can suggest improvements, which presiding Judge Elihu M. Berle would be able to enforce.

The settlement is seen as a welcome victory for women at Riot Games and in the gaming industry in a tumultuous year full of outrage around gender-based discrimination or mismanagement.

Cover photo: Collage: IMAGO / Panthermedia, Riot Games

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