Apple, Google, Intel fail to dismiss staff-poaching lawsuit

Thu Apr 19, 2012 12:17pm EDT
 

By Jonathan Stempel

(Reuters) - Apple Inc, Google Inc, Intel Corp and four other technology companies were ordered by a judge to face an antitrust lawsuit claiming they illegally conspired not to poach each other's employees.

District Judge Lucy Koh in San Jose, California, rejected the companies' bid to dismiss claims brought under the federal Sherman antitrust law and California's own antitrust law, the Cartwright Act.

In a decision on Wednesday night, Koh said the existence of "Do Not Cold Call" agreements among various defendants "supports the plausible inference that the agreements were negotiated, reached, and policed at the highest levels" of the companies.

"The fact that all six identical bilateral agreements were reached in secrecy among seven defendants in a span of two years suggests that these agreements resulted from collusion, and not from coincidence," Koh added.

Other defendants in the case included Adobe Systems Inc, Intuit Inc, Walt Disney Co's Pixar unit and Lucasfilm Ltd. Koh dismissed a claim brought under California's unfair competition law.

Lawyers for the defendants were not immediately available for comment.

The proposed class-action lawsuit was brought by five software engineers who accused the companies of conspiring to limit pay and job mobility by eliminating competition for labor, costing workers hundreds of millions of dollars.

Their claims are similar to those raised in 2010 by the Department of Justice when it settled antitrust probes against the companies.   Continued...

 
Customers enter the Apple flagship retail store to purchase the new iPad in San Francisco, California in this March 16, 2012 file photograph. REUTERS/Robert Galbraith/Files