Mo’Nique had filed a lawsuit against Netflix that could have set a precedent, alleging that the streaming service had retaliated against the comedian by refusing to engage in good faith negotiations after being accused of discrimination for making a low-ball offer in the first place. Netflix has now settled the case.
According to a court document, both parties requested the lawsuit be dismissed on Tuesday. The agreement’s terms weren’t made public.
According to the complaint, Netflix began pursuing Mo’Nique for a comedy special in 2017 at a time when it was actively expanding its stand-up content. The Oscar-winning actress, however, refused to accept what she believed to be a low opening offer of $500,000 for a one-hour special that Netflix would have total control over, including owning the copyright and retaining all audio-only rights to the special. As a result, the negotiations did not proceed very far. She objected to the offer, calling it discriminatory, and Netflix ended talks.
After Netflix refused to go beyond its opening offer, Mo’Nique filed a lawsuit against the streaming service. She claimed that the steamer had a policy of underpaying Black women, citing eight-figure contracts signed by comedians Dave Chappelle, Chris Rock, and Amy Schumer. According to the complaint, Amy Schumer used the compensation of other comedians to her advantage during negotiations and received 26 times more money than Mo’Nique received.
According to the complaint, “The offer made to Mo’Nique was only a ‘opening offer,’ from which there was an expectation – both by Netflix and Mo’Nique – of ongoing talks leading to additional compensation being paid to Mo’Nique.” Netflix halted all future negotiations and declined to negotiate in good faith in accordance with its customary procedures when Mo’Nique displayed protected conduct by objecting to the discriminatory offer.
In a public statement, Mo’Nique called for a boycott of Netflix in response to the allegedly discriminatory offer.
Because of what would happen if I accepted that lowball offer, At night, I was unable to sleep, Mo’Nique admitted. “What does Tiffany Haddish have coming to her if I accepted $500,000? What does the Black female comic have coming to her if I accept that? They’ll say, “Mo’Nique accepted this and she has that,” or something to that effect. What then is in store for them?
“We believe our opening offer to Mo’Nique was fair, which is why we will be contesting this case,” Netflix stated in a statement at the time. Regarding termination, Netflix stated that the idea that a company’s reluctance to negotiate in good faith implies discrimination or retaliation is unsupported by any body of law.
However, the federal judge presiding over the case agreed with Mo’Nique’s novel theory, according to which Netflix’s failure to negotiate an opening offer in line with its customary procedure—which typically results in higher compensation—constituted a “adverse employment action for purposes of a retaliation claim.”
According to the judge, “Mo’Nique’s allegations at the very least permit the plausible inference that, had she not challenged her offer as discriminatory, Netflix would have continued negotiating with her in good faith and increased her offer, consistent with its customary practice in dealing with talent in the entertainment industry.”
The dispute has been settled peacefully, according to Michael Parks, who is Mo’Nique’s attorney.
A request for comment from Netflix was not answered.