Apple and Google want to settle no-poaching lawsuit for $415 million

Google, Apple, Adobe and Intel do not want to go to trial in April — they’ve made that clear by agreeing to a $415 million settlement for the no-poaching class action lawsuit filed by over 60,000 employees years ago. The companies originally offered $324.5 million in 2014, but Judge Lucy Koh turned it down, as she believed the plaintiffs deserve a lot more than that. That’s still far from the $3 billion the plaintiffs originally wanted, but it’s still $90 million more to divvy up amongst themselves. What’s this no-poaching lawsuit about anyway? Well, between 2005 and 2009, these four Silicon Valley corporations along with Lucasfilm, Intuit and Pixar had an agreement not to steal each other’s employees.

You might recall that Steve Jobs even emailed then-Google Chief Executive Eric Schmidt back in 2007 to ask Mountain View’s HR department to stop trying to recruit one of Apple’s engineers, as per their deal. The employees that filed the class action lawsuit accuse the companies of enforcing a no-poaching agreement in order to keep salaries low. Lucasfilm, Pixar and Intuit already settled for $20 million and the agreement’s no longer in place, but since the remaining four companies are much larger, negotiations are taking time.

Despite the significantly more generous offer, the companies continue to deny any wrongdoing. As Intel spokesperson Chuck Mulloy told CNET:

We deny the allegations contained in the suit and we deny that we violated any laws or that we have any obligation to the plaintiff. We elected to settle the matter in order to avoid the risk, burdens and uncertainty of ongoing litigation.

Filed under: , , ,


Source: Reuters

Source: Engadget - Read the full article here

Author: Daily Tech Whip

This article is part of our 'News Tiles' service. The site is currently in Beta. When it is fully operational you will be able to search through and arrange the 'Tiles' to display a keyword, product or technology over your chosen time period. For example you would be able to display all of the leading tech articles on the new Kindle Fire, in one spot in real time. You will also have access to our own original reporting and analysis as well as a polished place to post your own thoughts & reviews here, amongst the Daily Tech Whip Community. Please let us know if you have any feedback via the contact form or via Twitter. Don't forget to come back next week and see our full site and claim your name and your own free tech blog.

Share This Post On