Riot Games agrees to pay $100 million in gender discrimination case

Tencent’s Riot Games, the developer of the League of Legends, announced Monday evening that it has agreed to pay $100 million to settle a 2018 gender discrimination lawsuit with more than 2,000 current and former female employees. 

According to the statements by both parties, Riot Games would set aside $80 million for the hundreds of women who are current and former employees who worked from November 2014 to present in the California class-action lawsuit. An additional $20 million will be paid towards plaintiffs’ legal fees.

“In an effort to drive ongoing transparency and accountability, Riot has also committed to having its internal reporting and pay equity processes monitored by a third party jointly approved by Riot and the California Department of Fair Employment and Housing (DFEH) for three years,” the company said.

According to a statement from the DFEH, Riot Games was accused of “ systemic sex discrimination and harassment” against women in promotions, hiring, and assignments. 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 the statement.

Riot tried to settle the case for $10 million in 2019, but the DFEH blocked the move because it sought more compensation.

Under the agreement, Riot has also agreed to create a $6 million cash reserve for each year of the three-year term of the consent decree (for a total of $18 million) to make pay adjustments and to fund diversity, equity, and inclusion programs.