Riot Games must give state documents from CEO probe

While hesitant to order settlement talks between Riot Games Inc. and women who say the company tolerated a "bro culture" work environment, a Los Angeles judge ruled Monday that the gaming giant must provide the state Department of Fair Employment and Housing with documents relating to an internal sexual harassment investigation of its chief executive officer.

A class of women sued Riot Games three years ago, alleging they were subject to sexual harassment, pay inequities and gender discrimination. The case settled tentatively for $10 million in 2019 but the state intervened, calling the amount inadequate. McCracken et al. v. Riot Games Inc., 18STCV03957 (L.A. Super. Ct., filed Nov. 6, 2018).

Former executive assistant Sharon O'Donnell sued Riot Games in January, alleging its chief executive officer, Nicolas Laurent, facilitated a hostile work environment and retaliated against her when she turned down his own sexual advances. An internal company investigation cleared Laurent of wrongdoing this year.

The Department of Fair Employment and Housing said it was repeatedly denied records from the internal investigation into Laurent, data relating to pay and job classifications for employees, and information about the corporate structure and hierarchy since Laurent became CEO.

The state agency said it is entitled to make complaints relevant to the claims that Riot Game's culture led by a male executive team created a highly subjective decision-making process that resulted in discrimination against women.

Riot Games objected to the state's requests on the grounds of burden, privilege and relevancy. The company said it had already provided all non-privileged documents. The investigation into sexual harassment claims against Laurent are subject to attorney-client privilege, Riot Games' attorneys argued.

None of the information sought was privileged, as the decision not to sanction Laurent was published by media outlets, the state contended. News articles about Laurent's exoneration "should raise questions for waiver of privilege," the state's lawyer, Melanie Proctor, told Los Angeles County Superior Court Judge Elihu M. Berle on Monday.

"When Riot exonerated its CEO in a systemic harassment complaint, that shouldn't be overlooked," Proctor said.

Catherine A. Conway, partner at Gibson, Dunn & Crutcher LLP, represents Riot Games. She contended that public statements that include details about the outcome of an investigation doesn't mean that the company waives privilege about the contents of an internal investigation.

Berle sided with the state, and ordered Riot Games to turn over the information, with the exception of Laurent's pay and benefits. If such information is privileged, Riot Games must show why, Berle ruled.

Also on Monday, Berle suggested parties enter into private mediation, rather than having another judge assist with a mandatory settlement conference. The state has opposed any mandatory settlement conference, citing the outstanding discovery and jurisdictional issues, while Riot Games and the women plaintiffs say they want to proceed.

The mandatory settlement conference discussion will resume Thursday.