Riot Games to pay $100M to settle gender discrimination lawsuit

Riot Games is the developer of video games League of Legends, will pay $100 million to settle a class-action gender-discrimination lawsuit, the company announced Monday. This settlement amounts to 10 times the amount that the company initially agreed to.

Riot was originally ordered in 2019 to pay $10 million to the thousands of class members when California’s Department of Fair Employment and Housing (DFEH) stepped in, alongside the Division of Labor Standards Enforcement (DLSE), to oppose the settlement. Instead, the two state agencies argued that Riot should be paid up to $400million for labor violations.

The original lawsuit was filed in 2018 by former Riot employees Melanie McCracken and Jes Negrón, following a Kotaku report that detailed widespread sexism and gender-based discrimination within the company.

The majority of the settlement — $80 million — will go to women who either currently or formerly worked for Riot since November 2014. DFEH confirmed that at most 2,365 women are entitled to a share of the settlement. The rest of the settlement, $20 million, will be paid as attorney fees and “miscellaneous expenses,” Riot said.

“In the battle for equality, announcing one’s truth is the singularity that changes everything,” former Riot artist Gabriela Downie said. “It takes bravery to come forward with a loud message about oppression and pain, but the right people hear it and will help. I’m grateful to the other Riot women who stood up alongside me and to all the Rioters who supported our efforts to achieve equal pay and fair treatment for women.”

Alongside the $100 million payout, Riot agreed to “substantial systemic changes,” which include a “gender equity analysis,” performed by an independent expert, of pay, promotions, and assignments for three years. Riot also committed to creating a $6million fund each year, totaling $18million, in order to finance diversity initiatives and pay equity adjustments.

“I am so glad we achieved this first step toward justice for the women of Riot Games,” Negrón said. “I hope this case serves as an example for other studios and an inspiration for women in the industry at large. Women in gaming do not have to suffer inequity and harassment in silence — change is possible.”

A Riot representative said in news release that it hopes to “lead by example in bringing more accountability and equality to the games industry.” Here is Riot’s full statement:

Riot was part of the industry’s reckoning three years back. We had to face the fact that despite our best intentions, we hadn’t always lived up to our values. The company was at an important crossroads. We could either deny our cultural shortcomings or apologize and correct the course to build a stronger Riot. We chose to do the former. We’re incredibly grateful to every Rioter who has worked to create a culture where inclusivity is the norm, where we’re deeply committed to fairness and equality, and where embracing diversity fuels creativity and innovation.

While we’re proud of how far we’ve come since 2018, we must also take responsibility for the past. We believe that the settlement adequately acknowledges Riot’s negative experience and shows our willingness to set an example by bringing greater accountability to the industry.

A second gender discrimination and wrongful termination lawsuit was filed in 2021 by former Riot executive assistant Sharon O’Donnell. In it, O’Donnell alleged that CEO Nicolo Laurent had her fired after she reported him to human resources. The case remains open, but Riot has now cleared Laurent from any wrongdoing.

The video games industry is still in the midst of its “reckoning” with sexism and workplace misconduct. Ubisoft and Sony Interactive Entertainment, three of the largest studios, have been charged with discrimination based on gender and/or races. Activision Blizzard faced numerous lawsuits as a result of its DFEH probe. But it’s not just the industry’s biggest players; smaller studios, like Go HomeFullbright, developer SeasonScavengers Studio developer, also face similar allegations.

The rise in worker solidarity, such as strikes, walkouts, unionization, etc., has been despite these accusations.

“To the rest of our industry, keep speaking up and keep pushing for accountability,” Riot employee Gina Cruz Rivera said via a statement through lawyers. “Your voice matters and together we can make this industry safer and more inclusive for everyone.”