The Washington Commanders have agreed to pay $1 million to settle a lawsuit arising out of sexual harassment allegations.
The $1 million settlement did not arise from an employment lawsuit filed by individual employees, though. The District of Columbia Attorney General’s office sued under consumer protection laws.
The case raises an unusual question:
How does a workplace sexual harassment investigation turn into a lawsuit under consumer protection laws? The case also highlights how workplace culture risk can escalate beyond internal HR issues.
From Workplace Allegations to a Consumer Protection Lawsuit
The answer begins with a 2020 investigative report by The Washington Post describing a workplace culture marked by allegations of sexual harassment, verbal abuse, and other abusive conduct within the organization.
Following that report, the D.C. Attorney General’s Office launched an investigation in 2021 and ultimately filed a lawsuit under consumer protection laws.
The Attorney General argued that the team, under prior ownership, misled fans by misrepresenting how it handled allegations of sexual misconduct and a persistently hostile work environment.
In July 2023, following another investigation led by former U.S. Attorney Mary Jo White into workplace misconduct and potential financial improprieties, the National Football League fined former owner Dan Snyder $60 million, finding that he personally engaged in sexual misconduct—findings that directly contradicted Snyder’s earlier denials.
How Workplace Misconduct Escalated Beyond HR
Cases involving toxic workplace cultures are unfortunately not rare.
Women came forward with allegations of sexual harassment by co-workers, managers, and senior executives. Reports suggested the problem persisted for years with little meaningful effort to address it.
That alone is troubling.
But what makes this case different is how far the consequences spread.
Investigative reporting triggered a league investigation. The league’s findings contradicted public statements by ownership. Eventually, government regulators stepped in.
The lawsuit that led to the $1 million settlement was not an employment lawsuit brought by individual employees. It was a government enforcement action under consumer protection laws.
Culture Risk Does Not Stay Inside HR
The Commanders are now under new ownership. Yet the current ownership group agreed to the settlement.
In other words, the financial consequences of workplace culture failures followed the organization into new leadership.
When leadership behavior drives workplace culture problems, the consequences rarely stay confined to HR—and sometimes they do not stay with the leadership that created them.
Culture risk is not just an HR issue. It can become a business risk that outlives changes in leadership and even changes in ownership.
When Workplace Culture Becomes Reputational Risk
Culture failures can also damage brand and credibility.
Sports franchises are entertainment businesses, but they are also cultural institutions. Fans identify with teams and often view athletes and organizations as role models.
When allegations of workplace misconduct become public, that relationship changes. The story is no longer about wins and losses on the field—it becomes a question of integrity and leadership.
That kind of reputational damage can take years to repair.
Workplace Risk in Business Transactions
This case also highlights a risk that often receives less attention: transaction risk.
Dan Snyder personally paid a $60 million fine for his conduct. But the later settlement occurred under entirely new ownership.
In other words, the financial consequences did not stop with the individuals responsible for the original misconduct.
Prospective buyers often evaluate financial performance, contracts, and operational liabilities when considering an acquisition. But workplace culture risks are not always examined with the same rigor.
In high-profile cases, those risks may already be visible. In many transactions, however, they are not.
That is where due diligence becomes critical.
Evaluating Workplace Risk During Due Diligence
Buyers evaluating potential acquisitions should consider whether workplace culture risks may exist beneath the surface.
Workforce-related due diligence may include reviewing:
- internal complaints
- employee turnover patterns
- prior workplace investigations
- leadership behavior and accountability
- documentation of HR responses to workplace concerns
Competent counsel with experience in employment law can help identify risks that might otherwise remain hidden.
The Commanders case demonstrates how workplace culture problems can expand far beyond internal HR issues.
What begins as a workplace complaint can become investigative reporting, regulatory scrutiny, reputational damage, and financial liability.
And sometimes those consequences do not stop with the leadership that created the problem.
Workplace culture risk, in other words, is not just a workplace issue. It is an organizational risk—one that can follow a business long after the original misconduct occurred.
Be the first to know about changes in wage law, M&A risk, and HR regulations, subscribe to our newsletter.
Contents of this post are for educational/informational purposes only, are not legal advice, and do not create an attorney-client relationship. Consult with competent employment counsel in the state(s) in which you employ people with your specific questions.
Before choosing an attorney, you should give this matter careful thought. The selection of an attorney is an important decision. If you find this communication to be inaccurate or misleading, you may report it to the Committee on Attorney Advertising Hughes Justice Complex, CN 037, Trenton, NJ