State civil rights agency accused of hampering Riot Games settlement

Attorneys for women who sued Riot Games for alleged sex discrimination and harassment accused the state's civil rights agency on Friday of attempting to gain sole control over the outcome of the case by interfering with settlement discussions.

"It is extremely disappointing that the [Department of Fair Employment and Housing] is trying to remove women from participation," said Nicholas Sarris, partner at JML Law APLC, plaintiffs' co-counsel with sole practitioner Genie Harrison. "The department wants to be the sole arbiter. This should be left in the hands of the women."

On Thursday, lawyers for the department objected to the plaintiffs and the online gaming giant proceeding with a mandatory settlement conference, arguing that there are a host of discovery disputes relating to sexual harassment allegations against the company's chief executive officer, pay equity and discriminatory behavior against female employees that have yet to be resolved. A mandatory settlement conference would force premature disclosures in a case of this magnitude, wrote Melanie L. Proctor, assistant chief counsel for the fair employment agency and the Department of Labor Standards Enforcement.

"We're incredibly disappointed with the process of the litigation and the DFEH's position," Harrison said Friday. "We wholeheartedly disagree vigorously with the DFEH's position and with their intent to try to disenfranchise the women who brought this case."

Proctor wrote that Los Angeles County Judge Elihu M. Berle must determine if there are jurisdictional issues before any settlement. Also, the state will be prejudiced if Riot Games and the women plaintiffs proceed without the state's intervention and before class certification is granted, Proctor wrote.

The jurisdictional issue centers on class representative and former Riot Games employee Gabriele Downie, the state argued. Downie filed an individual lawsuit against Riot Games three years ago but dismissed the case and was substituted in as a class representative, Proctor wrote. Since Downie already dismissed her claims, she can't pursue those claims through a class procedure under California law, Proctor argued.

But Sarris and Harrison say the state is wrong, because Downie never settled her individual equal pay and fair employment claims. The agency can't try to oust Downie or her counsel from the litigation, Sarris argued. It was already agreed by parties in the case that Downie could proceed with those claims in the class action, Sarris said. Harrison and Sarris wrote in court papers that the Department of Fair Employment and Housing has a pattern of interfering in other cases, as evidenced by its conduct in a lawsuit filed by women against Activision/Blizzard Inc. In the Blizzard case, the department tried to stop Blizzard employees from speaking with and retaining private counsel, Harrison argued. DEFH v. Activision/Blizzard Inc., 21STCV26571 (L.A. Super. Ct., filed July 20, 2021).

For a long time, the department has had a desire to take on the gaming industry and its workplace culture, but it cannot interfere with the litigation and settlement process, Harrison said.

After the department began investigating Riot Games' workplace in 2018, several woman sued the company, stating they were subject to sexual harassment, unequal pay and discrimination, according to court records.

In 2019, the company entered into a preliminary settlement for $10 million.

The two state agencies intervened, arguing that the terms were grossly inadequate, and began prosecuting claims against Riot Games. McCracken v. Riot Games Inc., 18STCV03957 (L.A. Super. Ct. filed Nov. 6, 2018)

Riot Games lawyers, Catherine Conway, Katherine V.A. Smith and Tiffany Phan of Gibson, Dunn & Crutcher LLP, pointed out that no settlement has been reached, nor have any of the plaintiffs sought to dismiss their claims against the company.

Riot Games and the plaintiffs filed a stipulation on Sept. 15 telling the court they wanted to proceed with a mandatory settlement conference with Judge Daniel J. Buckley. The two sides said the state was invited to participate in the conference but declined to do so. A discovery conference is set for Sept. 27.

A representative of the Department of Fair Housing and Employment said the agency would not comment on pending litigation.