
A new California lawsuit accuses Apple, Google, Adobe Systems, Intel, and other tech companies of violating antitrust laws by allegedly conspiring to fix employee pay, as well as working out "no solicitation" deals with one another.
The suit (PDF), which seeks class action status, was filed today with the California Superior Court in Alameda County and alleges that because senior executives from Adobe, Apple, Google, Intel, Intuit, Lucasfilm, and Pixar "entered into an interconnected web of express agreements to eliminate competition among them for skilled labor," affected employees from those companies are entitled to compensation.
"My colleagues at Lucasfilm and I applied our skills, knowledge, and creativity to make the company an industry leader," said Siddharth Hariharan, a former Lucasfilm employee who filed the class action suit and is listed as the plaintiff. "It's disappointing that, while we were working hard to make terrific products that resulted in enormous profits for Lucasfilm, senior executives of the company cut deals with other premiere high tech companies to eliminate competition and cap pay for skilled employees," Hariharan said in a statement.
In the complaint, Hariharan seeks restitution for lost compensation as well as treble damages for those who are a part of the suit, which includes salaried employees from the companies during January 1, 2005, to January 1, 2010.
The suit focuses specifically on the companies targeted by a 2009 antitrust investigation by the U.S. Department of Justice. That investigation, and the civil lawsuit that followed, were settled back in September of last year, with the aforementioned companies agreeing to discontinue the use of "do not cold call" lists. Nonetheless, the suit says the companies are still profiting in the aftermath of the practice.
Read More at CNET.com
Written by Josh Lowensohn
**A diagram from the suit demonstrating how the tech companies allegedly reached agreements on hires and compensation.
(Credit: Lieff Cabraser Heimann and Bernstein)
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