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Riot Games may be required to pay 1,000 female employees a portion of a $400 million fund, instead of the original $10 million sum, to settle the class action lawsuit filed against the company in 2018 (via GamesIndustry.biz).
The update comes from an article from the LA Times, which reports that two state agencies have contributed their own investigations into the lawsuit. The California Department of Fair Employment and Housing claims that the plaintiffs may in fact be entitled to “over $400 million” due to the gender pay gap at the company, and this revelation is within the calculations made in the original settlement. Both the California Department of Fair Employment and Housing and also the Division of Labor Standards Enforcement disapproved of the motions leading to the original settlement, as the plaintiffs’ lawyers did not consider the wage differential when forming their conclusions.
Riot Games and the plaintiffs’ lawyers have fought back against the agencies’ claims and state that the original settlement should be approved by the court in February. Before that, there will be a hearing to determine whether the agencies are correct to intervene in the lawsuit, to be held on January 31. If verified, the DLSE will be able to investigate Riot Games for “potential labor law violations beyond the initial purview of the lawsuit.” In addition, the DFEH claims that “no enforceable changes to employment policies, at a company alleged to be rife with sexism, are part of the settlement,” despite the company’s pledge to create an “inclusive environment” for its employees.
A Riot Games spokesperson has responded to the reports made by the state agencies. “We worked hard to negotiate with the lawyer representing the class to reach an agreement that we collectively believe is fair for the class members,” said Joe Hixson in a statement to LA Times. “Now DFEH is trying to disrupt that agreement in a legal filing that is filled with inaccuracies and false allegations. We are particularly dismayed that the filing downplays and ignores the efforts we have made with respect to diversity, inclusion, and culture over the past 18 months. We look forward to making our case to the Court.”
