Menu
Tech giants increase offer to $415 million to settle no-poaching case

Tech giants increase offer to $415 million to settle no-poaching case

The judge will decide during a March hearing whether to approve the settlement

Hoping to avoid a potentially embarrassing trial, Google, Apple, Intel and Adobe have increased their offer to $415 million [m] to settle a lawsuit that accuses them of cutting secret deals not to hire each other's workers.

The offer comes after Judge Lucy Koh, of the District Court in San Jose, California, rejected a previous settlement offer of $324.5 million as being too low.

The "no-hire" agreements allegedly drove down wages for engineers and other tech workers and restricted their ability to move between jobs. Some 64,000 workers are represented in the class action suit.

"Plaintiffs and settling defendants reached the settlement through hard-fought, arm's-length negotiations after more than three years of litigation," lawyers wrote in court documents filed Thursday.

The case has enthralled Silicon Valley, in part because it shone an embarrassing light on an alleged conspiracy between some of its wealthiest firms, with deposition testimony taken from Eric Schmidt, Sergey Brin and other top executives. Judge Koh has said the late Steve Jobs was likely a central figure, if not "the" central figure, in the case.

It was reported earlier this week that the companies reached an agreement with plaintiffs, but the settlement figure at that time was not known.

A hearing is set for March 19 where Judge Koh will decide whether to approve the deal. At a previous hearing, she suggested the plaintiffs' attorneys were taking the easy way out to avoid risking a loss at trial.

Over 50 gigabytes of data have been produced by the companies as part of the case. Some of those files include emails sent between Jobs and other Silicon Valley executives.

"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," a spokesman for Intel said on Thursday, via email. "We elected to settle the matter in order to avoid the risk, burdens and uncertainty of ongoing litigation," he said.

Representatives for Apple and Google declined to comment, and Adobe did not immediately respond to a request for comment.

Of the $415 million settlement, the attorneys could take home up to $83 million in fees.

Zach Miners covers social networking, search and general technology news for IDG News Service. Follow Zach on Twitter at @zachminers. Zach's e-mail address is zach_miners@idg.com


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags social mediainternetGoogleApplelegalinteladobesocial networkingInternet-based applications and services

Featured

Slideshows

The making of an MSSP: a blueprint for growth in NZ

The making of an MSSP: a blueprint for growth in NZ

Partners are actively building out security practices and services to match, yet remain challenged by a lack of guidance in the market. This exclusive Reseller News Roundtable - in association with Sophos - assessed the making of an MSSP, outlining the blueprint for growth and how partners can differentiate in New Zealand.

The making of an MSSP: a blueprint for growth in NZ
Reseller News Platinum Club celebrates leading partners in 2018

Reseller News Platinum Club celebrates leading partners in 2018

The leading players of the New Zealand channel came together to celebrate a year of achievement at the inaugural Reseller News Platinum Club lunch in Auckland. Following the Reseller News Innovation Awards, Platinum Club provides a platform to showcase the top performing partners and start-ups of the past 12 months, with more than ​​50 organisations in the spotlight.​​​

Reseller News Platinum Club celebrates leading partners in 2018
Meet the top performing HP partners in NZ

Meet the top performing HP partners in NZ

HP has honoured its leading partners in New Zealand during 2018, following 12 months of growth through the local channel. Unveiled during the fourth running of the ceremony in Auckland, the awards recognise and celebrate excellence, growth, consistency and engagement of standout Kiwi partners.

Meet the top performing HP partners in NZ
Show Comments