Google, Apple, Intel, Adobe Settle Wage Theft Class Action Lawsuit

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Tech giants Google Inc., Apple Inc., Intel Corp. and Adobe Systems Inc. have agreed to settle a massive class action lawsuit accusing the Silicon Valley companies of wage theft and collusion that could cost them billions of dollars.

The class action settlement agreement, announced Thursday, marks the end of a long-running court battle over claims that the companies had a “gentleman’s agreement” in place that they would not poach each others’ employees. Current and former employees allege in the class action lawsuit that the companies entered into a conspiracy to set up “Do Not Call” lists and instruct recruiters not to call employees on this list.

This was allegedly supported by documents, including an email from an Apple board member to then-CEO Steve Jobs, indicating that Google would not attempt to recruit anyone from the Cupertino giant. Other evidence was presented that executives from Intel, Adobe, Intuit Inc., Lucasfilm Ltd., and Pixar Animation Studios Inc. were also in on the alleged collusion.

Intuit, Lucasfilm, and Pixar already reached class action settlement agreements in September 2013 that are awaiting court approval. A Final Fairness Hearing is scheduled for May 1.

The net result, the plaintiffs argued, was a drop in wages consistent with the lack of competition in the job market of roughly 10 to 15 percent because the companies represent a significant portion of the tech industry, especially in Silicon Valley. Plaintiffs said that by eliminating competition for employees, the anti-solicitation agreements cost workers millions of dollars in suppressed wages and incentives. Federal Judge Lucy Koh found the arguments compelling enough to approve class certification in October 2013.

After the companies were unable to get the Ninth Circuit Court of Appeals to dismiss the wage and hour lawsuit in January 2014, negotiations evidently heated up enough for the class action settlement agreement to come on Apr. 24, 2014 regarding Adobe, Apple, Google and Intel.

The terms of the high-tech employee antitrust settlement “are currently non-public” but the complaint had initially sought damages in the billions of dollars based on the effect the alleged collusion had on more than 150,000 employees.

The plaintiffs are represented by Lieff Cabraser Heimann & Bernstein LLP and Joseph Saveri Law Firm Inc.

The Silicon Valley Wage Theft Class Action Lawsuits are consolidated as In re: High-Tech Employee Antitrust Litigation, Case No. 11-cv-02509, in the U.S. District Court for the Northern District of California.

More information on the cases in the In re: High-Tech Employee Antitrust Litigation can be found at www.hightechemployeelawsuit.com.

If you think that you have missed out on unpaid overtime or other pay, you may be able to begin a wage and hour lawsuit to seek damages from your current or former employer. The first step is to determine whether or not you are eligible. You can do so by taking advantage of the free case eligibility review available to all those who fill out the case submission form at the Wage & Hour, Overtime Pay Class Action Lawsuit Investigation.