CALIFORNIA – Silicon Valley giants, Apple Inc. and Google Inc., are taking significant steps towards resolving a closely watched lawsuit. Tech workers have alleged that these companies, along with two others, conspired to avoid competing for employees, intending to offer low salaries.
In a recent hearing at the federal court in San Jose, California, Google’s lawyer, Robert Van Nest, reported that the involved parties, both the companies and the plaintiffs, have been in constant consultation with a mediator in an effort to resolve the dispute. Kelly Dermody, plaintiffs’ attorney, agreed with this assessment, highlighting progress in negotiations.
The case involves approximately 60,000 tech workers who have been granted permission to sue as part of a class-action lawsuit. This lawsuit, scheduled to begin in May, dates back to 2011 when five software engineers filed a lawsuit against Apple, Google, Adobe Systems Inc., Intel Corp, and others. The plaintiffs alleged a conspiracy to suppress wages by agreeing not to recruit or hire employees from other companies.
The defendants face accusations of violating the Sherman and Clayton Antitrust Acts by conspiring to eliminate competition for labor. This, in turn, deprived workers of job mobility and hundreds of millions of dollars in compensation.
The case has garnered significant attention in Silicon Valley, largely due to the revelation of emails between top executives, including the late Apple CEO, Steve Jobs, and former Google CEO, Eric Schmidt.
Previously, units of Walt Disney Co., such as Pixar and Lucasfilm, as well as Intuit Inc., have already reached settlements. Disney agreed to pay around $9 million, while Intuit paid $11 million in compensation.
The case, known in the United States District Court, Northern District of California, as In re: High-Tech Employee Antitrust Litigation, continues to be closely monitored by the business and legal community.
