Philadelphia Business Lawyers: Tech Giants Agree to $415 Million Settlement for Anti-trust Violations

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Four of Silicon Valley’s largest tech companies, Apple, Google, Adobe and Intel, have agreed to a $415 million settlement over claims that they conspired with one another in their employee hiring practices in order to stifle competition and suppress wages.

The settlement puts an end to a class-action lawsuit filed in 2011 on behalf of more than 64,000 programmers and engineers against Apple, Google, Intel, Adobe, Lucasfilm, Pixar and Intuit. The lawsuit claimed the defendants entered into a series of agreements with each other not to recruit or hire each other’s employees. This included a strict policy to refrain from soliciting, cold calling, recruiting, or otherwise competing for employees.

The plaintiffs alleged that the companies were in violation of state and federal antitrust laws that prohibit practices intended to limit employee’s power to negotiate for higher salaries.

Evidence of the pact included troves of embarrassing email conversations between high-ranking executive officers of the companies that detailed the anti-competitive agreement. In at least one such email, a top executive assured his rival of the swift termination of a recruiter who had dared to violate the pact. Other emails discussed the handshake agreement and its need to be kept quiet in order to avoid a lawsuit.

Lucasfilm, Pixar, and Intuit reached an earlier settlement of $20 million.  Apple, Google, Adobe, and Intel agreed to the $415 million settlement after a previous $324.5 million proposal was rejected in August on the grounds that it didn’t offer enough money for the affected workers.

The companies likely agreed to the deal in order avoid the risk of further litigation. If no settlement was made, the case was set to go before a jury this spring. A loss could have resulted in damages exceeding $9 billion, in addition to marring the public’s perception of the tech powerhouses.

This most recent settlement amounts to approximately $6,400 per employee. The companies have also agreed to refrain from restricting hiring and recruiting practices among themselves.

Philadelphia Business Lawyers at Sidkoff, Pincus & Green handle Business matters including Antitrust Litigation

At the Law Offices of Sidkoff, Pincus & Green, our Philadelphia business attorneys we handle all aspects of business law, including antitrust litigation, class action lawsuits and appeals, employment discrimination, and whistleblower actions. We combine our superior knowledge of the law with a fearless and unwavering commitment to justice in order to produce the best possible outcome for our clients.

Our office is conveniently located in Center City Philadelphia, allowing us to represent clients throughout the region, including Philadelphia County, Delaware County, and Montgomery County. To discuss your case with one of our highly skilled and experienced Philadelphia business lawyers call 215-574-0600 today or contact us online to schedule your confidential consultation.

New Jersey Business Attorneys Report on Latest Baseball Antitrust Matter

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Major League Baseball, one of the nation’s largest corporations, has found itself amidst a new round of antitrust litigation involving the move of the Oakland Athletics baseball team to San Jose, California.   According to the latest decision from the U.S. Court of Appeals for the Ninth Circuit, efforts by Major League Baseball to block the team’s move to San Jose did not violate federal antitrust laws.

In 2010, the City of San Jose sought approval from baseball commissioner Bud Selig to move the Oakland baseball team to their city.  Selig denied this request effectively blocking Oakland from moving the baseball team to San Jose.  The City of San Jose proceeded to file suit in the U.S. District Court for the Northern District of California alleging that Major League Baseball was denying the rights of baseball clubs and cities to negotiate relocations and stadium deals in violation of federal antitrust laws.

Congress passed the first federal antitrust laws (including the Sherman Act, Federal Trade Commission Act and Clayton Act) to protect economic liberty and free trade by proscribing unlawful mergers and business dealings.  Private parties, like Major League Baseball, may bring private causes of action against unlawful monopolies and business practices which restrain free trade.

U.S. District Court Judge Ronald M. Whyte initially denied San Jose’s claims citing a 1922 U.S. Supreme Court ruling that created a federal antitrust exemption for baseball clubs on the basis that baseball clubs were not engaged in “interstate commerce.”  The City of San Jose appealed the lower court ruling.   Earlier this month, the U.S. Court of Appeals upheld the lower court’s ruling that Major League Baseball did not violate federal antitrust laws by barring the team’s move to San Jose.  The Oakland A’s announced last summer the signing of a ten year deal to remain in Oakland.

At the Law Offices of Sidkoff, Pincus & Green, our experienced New Jersey business lawyers handle all types of business law matters including antitrust and intellectual property cases.  We represent businesses of all sizes in legal matters pending in state and federal courts.  The Law Offices of Sidkoff, Pincus & Green are conveniently located in Philadelphia, Pennsylvania to serve our business clients throughout the Delaware Valley. To schedule your free confidential consultation, call us today at 215-574-0600 or submit an online inquiry form.