Disney, Pixar, Lucasfilm Settle Animation Workers’ Antitrust Litigation for $100M

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The Walt Disney Company, Pixar, and Lucasfilm have reached a $100 million settlement in a class action lawsuit filed by animation and visual effects workers claiming the companies violated antitrust laws by conspiring to suppress wages via non-poaching agreements.

Also included in the antitrust settlement are Two Pic MC, formerly known as ImageMovers.

Disney and its related companies were the last remaining defendants in the antitrust litigation.

Earlier this month, a federal judge gave preliminary approval to a $50 million settlement with DreamWorks Animation, following a previous combined $19 million settlement with Sony Pictures Imageworks and Blue Sky. Each of the lump-sum payments will be put in one settlement fund, court documents say.

The workers urged the court to preliminarily approve the proposed settlement with the three companies, calling the settlement fair and reasonable.

“The settlement … reflects the risks plaintiffs must consider in reaching a successful outcome for class members through expert discovery, dispositive motions, trial and appeal,” reads the animators’ motion for preliminary approval. “For example, although plaintiffs believe the class members have meritorious claims, juries can be difficult to predict. And defendants would almost certainly appeal any adverse finding from the jury.”

The antitrust class action lawsuit was filed initially in 2014 by Robert Nitsch, a former DreamWorks Animation senior character effects artist; David Wentworth, a former ImageMovers Digital production engineer; and Georgia Cano, a digital artist who held jobs at Rhythm & Hues, Walt Disney Feature Animation, and ImageMovers Digital.

Court filings indicate that each of the named plaintiffs will seek incentive awards of $100,000 for their role in bringing the litigation.

The plaintiffs contend the companies’ conspiracy worked to restrain competition in several respects, including “gentlemen’s agreements” on such things as cold calling and notifying each other when making an offer to an employee of another company.

In addition, the antitrust lawsuit claimed that “the company making such an offer would not increase the compensation offered to the prospective employee in its offer if the company currently employing the employee made a counteroffer.”

The Class of employees include animation and visual effects employees at Pixar between 2004 – 2010; Lucasfilm between 2004 and 2010, DreamWorks Animation SKG Inc. from 2004 to 2010, The Walt Disney Company from 2004 to 2010, Sony Pictures Animation Inc. and Sony Pictures Imageworks Inc. from 2004 to 2010, Blue Sky Studios Inc. from 2005 to 2010 and Two Pic MC, formerly ImageMovers Digital, from 2007 to 2010.

A final fairness hearing on the Disney antitrust settlement is scheduled for Mar. 9, 2017.

The animators are represented by Jeff D. Friedman, Shana E. Scarlett, Steve W. Berman and Jerrod C. Patterson of Hagens Berman Sobol Shapiro LLP, Marc M. Seltzer, Matthew R. Berry, Elisha Barron, Steven G. Sklaver and John E. Schiltz of Susman Godfrey LLP, and Daniel A. Small, Brent W. Johnson, Jeffrey B. Dubner and Daniel H. Silverman of Cohen Milstein Sellers & Toll PLLC.

The Animation Workers Anti-Poaching Class Action Lawsuit is In re: Animation Workers Antitrust Litigation, Case No. 5:14-cv-04062, in the U.S. District Court for the Northern District of California.

UPDATE: On May 18, 2017, a California federal judge said she may sanction two Disney producers who objected to a $170 million settlement that would resolve an antitrust class action lawsuit alleging Disney, DreamWorks, Pixar and other studios agreed not to poach the other companies’ animation workers.