Animation Workers Seek Cert. for Anti-Poaching Class Action

A group of animators have asked a judge to grant Class certification to a class action lawsuit accusing DreamWorks Animation SKG Inc., Sony Pictures Animation Inc., Blue Sky Studios Inc., The Walt Disney Co., Lucasfilm Ltd. LLC, Pixar Animation Studios Inc. and Two Pic MC LLC of conspiring not to poach each other’s animation workers in order to keep wages down.

“By reducing solicitation, the defendants limited the amount of information available to the class to negotiate higher salaries,” the motion reads. “By colluding on compensation, the defendants increased the amount of information they had to negotiate lower salaries. The combination effectively increased defendants’ bargaining power at the expense of class members.”

The plaintiffs argue that the collusion among the defendants went on for years, and that as a result of the collusion, animators’ pay was suppressed by up to 30 percent in some years. According to the motion seeking certification of the anti-poaching class action lawsuit, the antitrust allegations were brought to light after the U.S. Department of Justice launched an investigation into the hiring practices of many of the tech companies in Silicon Valley.

In the motion supporting Class certification, the plaintiffs argue that their case is “a textbook horizontal antitrust class action.” They argue that evidence will support their allegations that Lucasfilm and Pixar initiated the conspiracy not to solicit each other’s workers and subsequently invited the other defendants to participate. Further, the plaintiffs argue they can show that the companies’ human resources personnel met to coordinate compensation of the animation workers.

“Although compensation information should be a closely guarded competitive secret, Defendants routinely provided each other with detailed compensation information about specific positions,” the plaintiffs state in their motion seeking Class certification. They allege that the defendants engaged in this conspiracy in an effort to suppress compensation for their animation workers.

“Given the common proof of conspiracy, antitrust injury, and damages described herein, continuing this case as a class action is superior to other procedural methods,” the plaintiffs argue in their motion seeking certification of the animation workers class action lawsuit.

Proposed Class Members would include animation and visual effects workers employed by Pixar between 2001 and 2010; Lucasfilm between 2001 and 2010; Dreamworks between 2003 and 2010; Disney between 2004 and 2010; Sony Pictures between 2004 and 2010; Blue Sky between 2005 and 2010; and Two Pic between 2007 and 2010.

A year ago, a California federal judge approved a $415 million tech worker antitrust class action settlement that accused Pixar, Apple, Google, Adobe, Intel and other tech companies of agreeing not to poach each other’s tech employees. Checks were reportedly mailed to eligible Class Members earlier this month.

The plaintiffs are represented by Jeff D. Friedman, Shana E. Scarlett, Steve W. Berman and Ashley A. Bede of Hagens Berman Sobol Shapiro LLP; Mark M. Seltzer, Matthew R. Berry, Jordan Talge and John E. Schilz of Susman Godfrey LLP and Daniel A. Small, Brent W. Johnson and Jeffrey B. Dubner 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 Mar. 25, 2016, a California federal judge has granted the plaintiffs motion to compel Disney’s Pixar Studios to hand over various internal documents from a related antitrust case settled in March.

UPDATE 2: On May 4, 2016, Sony Pictures Imageworks Inc. and Sony Pictures Animation Inc. agreed to pay $13 million to settle a class action lawsuit that accuses the companies of conspiring with other major Hollywood studios not to poach each other’s animation employees.

UPDATE 3: The animation workers antitrust class action settlement is now open! Click here for more information!
UPDATE 4: On Oct. 17, 2016, DreamWorks Animation has reacheda $50 million settlementwith a Class of former animation and visual effects employees who accuse the company and others of violating antitrust laws by engaging in an illegal “no poaching” agreement.UPDATE 5: On Jan. 31, 2017, The Walt Disney Company, Pixar, and Lucasfilm have reached a $100 million settlementin 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.

UPDATE 6: 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.

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