Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comFirm Insights
Author: Scarinci Hollenbeck, LLC
Date: November 7, 2013
The Firm
201-896-4100 info@sh-law.comA lawsuit alleging that several of the country’s most powerful high-tech companies had a secret, non-compete deal recently received class-action certification. More than 60,000 employees of Adobe Systems Inc., Apple Inc., Google Inc., and Intel Corp. are members of a class that allege that the pact not to recruit or hire each other’s employees resulted in decreased competition and lower salaries.
As we previously discussed on this Business Law Blog, many of the same Silicon Valley companies entered into a settlement with the Department of Justice in 2010 over similar allegations. Although they did not admit wrongdoing, they agreed to end the practice of entering agreements to refrain from, or pressure others to refrain from, soliciting, recruiting, or otherwise competing for another firm’s employees.
More recently, Lucasfilm and Pixar agreed to pay a combined $20 million to settle the civil antitrust claims against their companies. However, the remaining defendants employ over 90 percent of the class members.
The class certification process was not an easy process for the plaintiffs, and reflects the tough new standards established by the U.S. Supreme Court in Walmart v. Dukes, Comcast v. Behrend, and Amgen v. Connecticut Retirement Plans. U.S. District Judge Lucy Koh of the Northern District of California previously denied certification, but allowed the plaintiffs to provide additional evidence regarding the commonality of the harm suffered by the class.
After presenting new deposition testimony and limiting the class to only technical workers, the Judge changed her mind, concluding, “Plaintiffs’ evidence suggests not only that the anti-solicitation agreements eliminated a key tool of recruitment, cold calling, but also that the impact of this elimination affected the entire technical class.”
While liability must still be proved by plaintiffs, even the costs of defending these claims highlight that anti-poaching agreements have the potential to result in very costly liability. It must be understood that there are strong public policies on both federal and state levels against the restraint of trade. California, for example, outlaws non-compete agreements in employment agreements that do not involve the sale of a business. Non-solicitation agreements generally do not cause such problems provided they are not part of a conspiracy among employers as opposed to agreements entered into directly between employers and their employees.
The latest decision further suggests that the Supreme Court has not put class action suits totally out of reach. This case also demonstrates that obtaining a certification still remains a major hurdle for plaintiffs’ lawyers, however.
If you have any questions about this case or would like to discuss the legal issues involved, please contact me, Gary Young, or the Scarinci Hollenbeck attorney with whom you work.
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Crypto investor protection continues to evolve, with the SEC and CFTC investing resources and coordinating more closely to uphold regulatory standards. Whether you’re a retail investor, an institutional trader, or part of a crypto startup, understanding enforcement trends is essential for navigating this dynamic and high-stakes regulatory environment. Crypto Is No Longer the Wild West […]
Author: Dan Brecher

A Settled Regulatory Environment Enables Confident Capital Planning New Jersey’s new manufacturing incentive program, Next New Jersey Manufacturing Program, enters 2026 with something uncommon in economic development these days: policy stability. The statute is enacted, New Jersey Economic Development Authority’s (“NJEDA”) rules are adopted, and the application portal is open. With the election outcome settled, […]
Author: Michael J. Sheppeard

When done successfully, industry roll-up acquisitions can dramatically grow and strengthen your business. In this post, we break down what an industry roll-up is, why companies pursue it, and what makes it an effective (and sometimes risky) business strategy. What Is an Industry Roll-Up Acquisition? In an industry roll-up acquisition of companies, a buyer acquires multiple companies […]
Author: Dan Brecher

The federal government has launched one of the most ambitious scientific initiatives in decades, and it will redefine how companies develop technology, manage risk, and compete. The Genesis Mission, created by Executive Order and driven by the Department of Energy (“DOE”), is intended to accelerate scientific discovery through a national AI platform that links supercomputers, […]
Author: Michael J. Sheppeard

Stablecoins Leave the Grey Zone Stablecoins were supposed to be the “boring” part of crypto: digital dollars that just work. Yet for years they have lived in a regulatory no-man’s-land, classified one day as securities, the next as commodities, and sometimes as something regulators had not even named yet. That uncertainty is finally starting to […]
Author: Bryce S. Robins

If you operate a business without the proper license, you risk fines, insurance issues, reputational harm, and even business closure. Even innocent mistakes, like forgetting to renew a license, can have significant consequences, such as losing your lawsuit for payment of services that are unlicensed, which makes it imperative to have business license management procedures […]
Author: Dan Brecher
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!