Anne Bucher  |  May 5, 2016

Category: Labor & Employment

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Sony Pictures Animation class action settlementSony Pictures Imageworks Inc. and Sony Pictures Animation Inc. have 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, according to court documents filed Tuesday in California federal court.

According to the motion seeking preliminary approval of the Sony Pictures settlement, the proposed deal is “fair, reasonable and adequate” because the $13 million cash payment amounts to “approximately 16.7 percent of plaintiffs’ expert’s calculation of the damages attributable to Sony Pictures employees in the class based on the weight of the evidence.”

The parties argue that this 16.7 percent is higher than the 14 percent of damages represented by the settlements with all of the defendants in a similar case known as In re: High-Tech Employee Antitrust Litigation. Settlements in the High Tech litigation have been approved and checks to eligible claimants were mailed earlier this year.

If approved, the anti-poaching settlement will resolve all claims against the Sony Pictures defendants. Sony Pictures is the second studio to agree to a class action settlement. In March, Blue Sky Studios reportedly agreed to pay $5.9 million to escape the litigation.

The animation employee anti-poaching class action lawsuit was initially filed in September 2014 and alleges that Sony Pictures and other Hollywood studios entered into illegal anticompetitive agreements to not actively solicit each other’s employees. The studios reportedly agreed to refrain from “cold-calling” each other’s employees and coordinated compensation across the studios.

In addition, the defendants allegedly agreed to notify a studio when making a job offer to one of the studio’s employees, and agreed not to offer an increase in compensation to the prospective worker if the current employer planned to counteroffer.

Class Members of the proposed settlement would include:

“All animation and visual effects employees employed by defendants in the United States who held any of the jobs listed in Ashenfelter Reply Report Appendix C during the following time periods: Pixar (2001-2010), Lucasfilm Ltd. LLC (2001-2010), DreamWorks Animation SKG Inc. (2003-2010), The Walt Disney Company (2004-2010), Sony Pictures Animation Inc. and Sony Pictures Imageworks Inc. (2004-2010), Blue Sky Studios Inc. (2005-2010) and Two Pic MC LLC f/k/a ImageMovers Digital LLC (2007-2010).”

More information about the Sony Pictures class action settlement was not immediately available. Keep checking TopClassActions.com or sign up for our free newsletter for the latest updates. You can also mark this article as a “Favorite” using your free Top Class Actions account to receive notifications when this article is updated.

The plaintiffs are represented by Jeff D. Friedman, Shana E. Scarlett, Steve W. Berman and Ashley A. Bede of Hagens Berman Sobol Shapiro LLP; Marc M. Seltzer, Matthew R. Berry, Jordan Talge and John E. Schlitz of Susman Godfrey LLP; and Daniel A. Small, Brent W. Johnson and Jeffrey B. Dubner of Cohen Milstein Sellers & Toll PLLC.

The Sony Pictures 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: The animation workers antitrust class action settlement is now open! Click here for more information!

UPDATE 2: On Jan. 31, 2017, 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.

UPDATE 3: 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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3 thoughts onSony Pictures Agrees to $13M Anti-Poaching Class Action Settlement

  1. Top Class Actions says:

    UPDATE 3: 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.

  2. Top Class Actions says:

    UPDATE 2: On Jan. 31, 2017, 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.

  3. Top Class Actions says:

    UPDATE: The animation workers antitrust class action settlement is now open! Click here for more information!

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