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This Article is From Sep 05, 2014

Apple, Google Appeal Rejection of $324.5 Million Settlement in Hiring Lawsuit

Apple, Google Appeal Rejection of $324.5 Million Settlement in Hiring Lawsuit
The Google signage is seen at the company's offices in New York January 8, 2013. (Reuters)
San Francisco: Four tech companies including Apple and Google appealed the rejection of a proposed $324.5 million settlement in a lawsuit over hiring practices in Silicon Valley, according to a court filing from the companies late on Thursday.

Plaintiff tech workers accused Apple, Google, Intel and Adobe of conspiring to avoid poaching each other's employees.

Last month, U.S. District Judge Lucy Koh in San Jose, California rejected the proposed class action settlement, saying the amount was too low.

The companies said on Thursday that they had asked the 9th U.S. Circuit Court of Appeals to overrule Koh's decision.

Adobe declined to comment. Plaintiff lawyers, as well as representatives for the other three firms, could not immediately be reached for comment.

Tech employees alleged that the conspiracy limited their job mobility and, as a result, kept a lid on salaries.

The case, filed in 2011, has been closely watched because of the possibility of big damages being awarded and for the opportunity of a glimpse into the world of some of America's elite tech firms.

Plaintiffs based their allegations of conspiracy largely on emails circulated among Apple's late co-founder Steve Jobs, former Google Chief Executive Officer Eric Schmidt, and some of their rivals.

In rejecting the proposed settlement, Koh cited "substantial and compelling evidence" that Jobs "was a, if not the, central figure in the alleged conspiracy."

Given the strength of the case against the companies, the plaintiffs should have gotten more money, Koh wrote.

Earlier this week both sides said they had resumed mediation talks.

A hearing before Koh is scheduled for Sept. 10.

The case is In Re: High-Tech Employee Antitrust Litigation, U.S. District Court, Northern District of California 11-cv-2509.
© Thomson Reuters 2014

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