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Summary:

A new court filing confirms tech companies have formally agreed to pay $324.5 million to settle a class action case over their secret anti-poaching agreement.

Four tech giants have formally put a settlement before court that would put an end to a class action case that accuses them of conspiring to suppress wages in Silicon Valley through no-poaching agreements.

New court filings (embedded below), spotted by Reuters, confirm earlier reports that Apple, Google, Adobe and Intel have agreed to pay $324.5 million to around 64,000 workers.

The settlement, which proposes a schedule of notice and opt-out deadlines, must still be approved by a judge before it can take effect. One of the original plaintiffs, Michael Devine, is objecting to the deal on the grounds that it does do enough to punish the companies, but that will not necessarily halt approval.

The case began in 2011 and has been a hot topic in Silicon Valley, in part because of the role of Apple’s CEO in organizing the anti-poaching agreements.

Unlike many states, non-compete agreements are illegal in California, which is one reason the tech companies sought other ways to restrict employees’ movements.

Correction: an earlier version of this story named IBM instead of Adobe as part of the settlement. IBM was not involved in the proceeding. The story was updated at 12:45am ET.

Proposed Settlement in Wage Class Action

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  1. So how much of the $324M is going to the law firm that filed this? $100M, 150M or more?

    1. Jeff John Roberts jonsmirl Friday, May 23, 2014

      Pretty good guess, Jonsmirl.. I’ve heard 25%, which is pretty standard in these sort of cases..

    2. If the people want to take it on themselves, they always have that option as well.

  2. Don’t they make enough money to spread it around? Even Henry Ford realized that if you paid your workers a decent salary they could afford to buy the product they were making.
    Leslie

  3. So, if the lawyers skim the first 25%, that looks to be about $4,068 per person. Hmmm

    Lawyers win again. What’s new?

    1. The attorneys get paid because the companies did wrong.

      Maybe you should use words like “SKIM” to describe the initial CONSPIRACY to reduce wages by these large corporations/

      If they did not try to cheat against economics rules of competition, the attorneys would not have gotten a cent.

      In the long run, WORKERS WIN.

      You might want to thank these attorneys.

  4. I don’t see IBM mentioned anywhere in the settlement document, I think the writer meant Intuit. Strangely Pixar and Lucasfilm are part of it…

    1. I don’t see IBM either in the settlement or the articles you linked. That’s a pretty big mistake. Will you be posting a correction including one on twitter?

      1. Jeff John Roberts DJ Friday, May 23, 2014

        CarterB and DJ, that should have read Adobe not IBM. Thanks for flagging — I’ve updated the story with a correction note.

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