Riot Games settles gender discrimination lawsuit for $100 million

Riot Games has reached a groundbreaking resolution in its high-profile class-action gender discrimination case, culminating in a $100 million settlement package. The majority of this amount—$80 million—will be distributed among female employees who worked at the company between November 2014 and the present day, marking one of the largest settlements in gaming industry history for workplace discrimination claims.

The legal action against Riot Games emerged from extensive allegations documenting a systematically hostile environment for women, including pervasive harassment and toxic workplace culture elements. These issues first gained significant public attention through a comprehensive 2018 investigative report by Kotaku that exposed the League of Legends developer’s deeply problematic internal practices and institutional failures.

Riot lawsuit gives $80 million to previous and current employees

The final settlement terms were formally disclosed on Monday, concluding several years of complex legal proceedings and negotiations. Notably, Riot Games had initially proposed resolving the litigation for just $10 million approximately two years ago, but California’s Department of Fair Employment and Housing (DFEH) actively intervened through official court filings. The regulatory agency compellingly argued that Riot’s original offer represented inadequate compensation, presenting calculations suggesting affected current and former employees might collectively deserve up to $400 million in damages.

The approved settlement represents a tenfold increase over Riot’s initial proposal, though it amounts to approximately one-quarter of the DFEH’s maximum valuation. The agreement involves coordination with multiple California regulatory entities alongside individual plaintiffs. Compensation distribution will encompass all female-identifying workers employed during the specified timeframe, with eligibility extending to more than 2,000 individuals according to Launcher’s analysis.

Official statements from both the DFEH and California Division of Labor Standards Enforcement confirm the settlement covers 1,065 female employees and 1,300 female contractors within the relevant period. Riot must implement numerous immediate and long-term organizational changes to fulfill its restitution obligations completely.

Riot under a watchful eye until 2024 after settlement

Riot Games faces obligations extending far beyond monetary payments under the settlement terms, with the DFEH announcement outlining multiple structural requirements. The company must establish an $18 million cash reserve specifically designated to fund comprehensive diversity, equity, and inclusion (DEI) programs, representing one of the largest mandated corporate DEI investments in recent memory.

Additionally, Riot is required to convert 40 temporary contractor positions into permanent roles across various departments, providing significantly enhanced job security and benefits for affected workers. This conversion addresses longstanding concerns about precarious employment conditions within the gaming sector.

Perhaps most significantly, Riot must engage and compensate an independent third-party monitor approved by the DFEH to oversee implementation of corrective measures and ensure compliance with all settlement provisions.

The monitoring period extends through 2024, providing sustained oversight to verify that Riot addresses the systemic issues identified in the litigation. This extended supervision represents an unusual but necessary measure given the severity and persistence of the documented problems within the company’s culture and practices.

The settlement’s structural components represent a comprehensive approach to addressing systemic workplace issues. The $18 million DEI fund allocation exceeds typical corporate diversity initiatives, reflecting the severity of the identified problems and the need for substantial, lasting change.

Creating 40 new permanent positions from previous temporary contractor roles addresses critical stability concerns while setting new industry standards for employment practices. This conversion not only benefits affected workers but establishes precedents that could influence employment standards across the technology and gaming sectors.

The third-party monitoring provision ensures independent verification of Riot’s compliance with all settlement terms. The external monitor will have authority to review company policies, hiring practices, promotion processes, and workplace culture indicators through the monitoring period conclusion.

These reforms collectively represent one of the most extensive corporate restructuring mandates following discrimination litigation, potentially serving as a model for addressing similar issues in other gaming companies and tech organizations facing comparable challenges.

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