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California agencies say that a recent Riot Games sexual harassment class action settlement could be unfair to Class Members who may deserve more.
Although the gender discrimination lawsuit was settled for $10 million, the California Department of Fair Employment and Housing recently filed an opinion with the Los Angeles Superior Court stating the plaintiffs could be entitled to “over $400 million.”
The agency argues that, based on settlement calculations, $400 million in back pay could be owed to the women based on the alleged wage differential. The department also noted that “no enforceable changes to employment policies, at a company alleged to be rife with sexism, are part of the settlement.”
The Division of Labor Standards Enforcement also opposed the settlement. The agency filed a request to intervene in late December, arguing that plaintiff attorneys failed to sufficiently engage in discovery to determine a sufficient settlement amount and did not hold Riot Games accountable for labor law violations.
The proposed settlement would resolve claims that Riot Games, the creator of League of Legends, created a “men-first,” “bro culture” which discriminated against female employees and subjected them to sexual harassment.
According to the Riot Games class action, which was filed in November 2018, female employees were faced with sexual harassment such as “crotch-grabbing, phantom humping, and sending unsolicited and unwelcome pictures of male genitalia” while working for the company.
The plaintiffs argued that women who spoke up about the harassment were met with “denied promotions, refusals to provide increased compensation or equal pay, demotions, reassignment with significantly different responsibilities, losses of benefits, suspensions, terminations and other adverse employment actions.”
In December, the plaintiffs motioned for preliminary approval for a $10 million settlement that would resolve claims against Riot Games. The deal would benefit current and former female employees who worked for Riot Games in California since November 2014.
Under the settlement, Class Members would receive payments starting at $2,500 or $5,000. Class Members would reportedly get payments based on how long they worked for the company. Temporary contractors would receive a minimum of $500 from the settlement.
Although the plaintiffs’ attorneys note that the deal would be historic as one of the largest gender inequality settlements in California, state agencies argue that it is not enough.
Both the plaintiffs and defendants are reportedly planning to defend the settlement in court, despite the criticism from the Department of Fair Employment and Housing and Division of Labor Standards Enforcement.
“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,” a spokesperson for Riot Games told the Los Angeles Times. “We look forward to making our case to the Court.”
Do you think the Riot Games class action settlement should be increased? Share your opinions in the comment section below.
The plaintiffs and settlement Class are represented by Ryan D. Saba and Tyler C. Vanderpool of Rosen Saba LLP.
The Riot Games Sexual Harassment Class Action Lawsuit is McCracken, et al. v. Riot Games, et al., Case No. 18STCV03957, in the Superior Court of the State of California, County of Los Angeles.
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