The company said it will pay $80 million to the members of the class-action suit, comprising all current and former full-time women employees and temporary agency contractors in California who worked from November 2014 to present.
An additional $20 million will be paid towards attorneys’ fees and miscellaneous expenses, Riot Games said in a statement. Other stipulations of the agreement include Riot funding a diversity and inclusion program, job assignments to be conducted by a third party and an audit of workplace investigations.
“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 for three years,” the company said.
A final approval of the settlement by the court is pending, with a hearing expected in the coming months, the statement added.
“Women have been demanding for years that employers end discrimination. We hope this settlement marks a turning point in the way allegations of sexual harassment and gender discrimination are treated in workplaces across California and beyond,” a spokesperson for the Department of Fair Employment and Housing told CNN Business.
The lawsuit was filed in November 2018 by now-former employees Melanie McCracken and Jess Negrón, alleging gender discrimination as well as sexual harassment and misconduct at Riot Games. McCracken settled her claims separately from the class-action lawsuit.
The lawsuit was filed three months after gaming publication Kotaku published an investigation
into an alleged culture of sexism at Riot Games. After this story was published, Riot posted a blog post apologizing for the reported misconduct.
“We’re sorry that Riot hasn’t always been—or wasn’t—the place we promised you. And we’re sorry it took so long for us to hear you,” the August 2018 post read. “In the days, weeks, months, years to come, we’re going to make Riot a place we can all be proud of,”