Riot Games is the video game developer behind popular titles such as League of Legends or Valorant. On Monday, Riot Games announced that it had agreed in principle to pay $100 million to settle an allegation of gender discrimination brought by more than 2,000 former and current female employees.
The original settlement was set for $10 million. But, in early 2020, two California employment agencies intervened and argued that the settlement should be stopped. Separately from the lawsuit, the state was investigating the company following claims of sexual harassment, discrimination and retaliation.
If the settlement is approved by the Los Angeles Superior Court, it will “send the message that all industries in California, including the gaming industry, must provide equal pay and workplaces free from discrimination and harassment,” Kevin Kish, the director of the California Department of Fair Employment and Housing, said in a statement.
Under the terms of the agreement, more than 1,000 full-time employees and 1,300 contractors dating back to November 2014 would split $80 million, with another $20 million going to lawyers’ fees and other costs. Riot also agreed that it would fund a diversity program and that a third-party analysis of gender equity and job assignments and employee pay, as well an audit of workplace investigations, would be conducted over the three-year period.
“We believe this is the right thing to do, for both the company and those whose experiences at Riot fell short of our standards and values,” the company said in a statement. Riot added that it had improved its company culture over the past three years and that it hoped that “demonstrates our desire to lead by example in our industry.”
Riot, which is owned by the Chinese internet giant Tencent, is one of the world’s most prominent gaming publishers. According to SuperData, the gaming research division of Nielsen, Riot’s flagship League of Legends game earned nearly $2 billion in revenue last fiscal year.
But similar to many other gaming publishers — including Ubisoft and Activision Blizzard — Riot has also contended with frequent accusations of harassment and a work environment that women described as sexist and toxic.
This year, Riot’s chief executive, Nicolo Laurent, was sued over claims he sexually harassed his former executive assistant. The case is still pending. A committee formed by the company’s board of directors later said it found no evidence of the claims against Mr. Laurent.
In an email to the company’s employees viewed by The New York Times, sent minutes before the settlement announcement, Mr. Laurent wrote that the timing “isn’t ideal” but the “final details of the agreement came together quickly.” He said he hoped the settlement “symbolizes a moment where we move forward as a united company.”
Monday’s settlement was hailed as a win by Riot women.
“I hope this case serves as an example for other studios and an inspiration for women in the industry at large,” one plaintiff, Jes Negron, said in a statement issued through a lawyer. “Women in gaming do not have to suffer inequity and harassment in silence — change is possible.”
Source: NY Times