Judge Lucy Koh today rejected the settlement deal that Apple, Google, Intel, and Adobe had reached with tech workers over a lawsuit involving anti-poaching agreements, reports CNBC . According to Koh, the $324.5 million settlement number agreed upon in April is too low, and should be at least $380 million.
Tech workers initially levied the class action anti-poaching lawsuit against the companies in 2011, accusing them of creating no-hire agreements and conspiring not to poach employees from one another in an effort to keep salaries lower.
No-solicitation agreements revealed during the lawsuit dated back to 2005, involving Apple, Google, Intel, Adobe, Intuit, Lucasfilm, and Pixar, among others. The agreements prevented company recruiters from contacting employees placed on specific no-contact lists.
The United States Department of Justice stepped in back in 2010, ordering the companies to stop entering anti-poaching agreements, but the class-action civil lawsuit brought against the companies by 64,000 employees will remain open until a suitable settlement can be reached. The suit originally asked for $3 billion in damages, a significantly higher number than the 324 million agreed upon in April.
Pixar, Lucasfilm, and Intuit previously settled their cases for approximately $20 million.
A judge rejected a $324.5 million settlement Friday between tech workers and companies Google, Apple, Intel and Adobe in a lawsuit accusing the firms of conspiring to avoid poaching each other's employees.
The ruling by U.S. District Judge Lucy Koh in San Jose, California, said the proposed settlement amount "falls below the range of reasonableness."
Tech workers initially levied the class action anti-poaching lawsuit against the companies in 2011, accusing them of creating no-hire agreements and conspiring not to poach employees from one another in an effort to keep salaries lower.
No-solicitation agreements revealed during the lawsuit dated back to 2005, involving Apple, Google, Intel, Adobe, Intuit, Lucasfilm, and Pixar, among others. The agreements prevented company recruiters from contacting employees placed on specific no-contact lists.
The United States Department of Justice stepped in back in 2010, ordering the companies to stop entering anti-poaching agreements, but the class-action civil lawsuit brought against the companies by 64,000 employees will remain open until a suitable settlement can be reached. The suit originally asked for $3 billion in damages, a significantly higher number than the 324 million agreed upon in April.
Pixar, Lucasfilm, and Intuit previously settled their cases for approximately $20 million.