Court Greenlights Riot Games’ $100M Settlement

Key insights

6 takeaways

01
California courts have granted final approval for a $100 million settlement to resolve a 2018 class-action gender discrimination lawsuit against Riot Games.
02
The settlement includes $80 million in direct payments to approximately 1,600 current and former employees and contractors, with the remaining $20 million allocated to legal fees and related expenses.
03
Riot Games is required to spend an additional $18 million over the next three years to fund diversity, equity, and inclusion (DEI) programs.
04
As part of the agreement, Riot must fill approximately 40 full-time positions through a competitive process specifically for class members who previously worked as temporary contractors.
05
The company is mandated to retain a third-party DEI expert for three years to monitor and analyze its progress in fostering a fair and diverse workplace.
06
The legal action originated from a 2018 lawsuit filed by former employees Melanie McCracken and Jess Negrón, following public reports detailing systemic gender discrimination at the company.

Summary

California courts have granted final approval for a $100 million settlement between Riot Games and the California Department of Civil Rights, effectively resolving a gender discrimination class action lawsuit that originated in 2018. The litigation, which followed public reports of systemic workplace sexism at the company, was initially paused in 2021 before reaching this final agreement.

The settlement terms dictate that $80 million will be distributed to approximately 1,600 current and former employees and contracted workers who were impacted by the claims. The remaining $20 million is designated for legal fees and associated administrative costs. Beyond the direct financial payout, the agreement mandates that Riot Games invest an additional $18 million over three years into diversity, equity, and inclusion (DEI) initiatives. This includes a requirement to fill roughly 40 full-time positions with eligible class members who previously served as temporary contractors and to retain a third-party expert to monitor and report on the company’s progress in fostering a more equitable workplace.

This resolution marks a significant conclusion to a high-profile legal challenge within the gaming industry, specifically impacting the developer behind major titles such as League of Legends and Valorant. By formalizing these financial and operational commitments, the settlement establishes a structured path for the company to address past allegations of systemic discrimination through both compensation and long-term organizational reform.