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Antitrust Class Action Against Luxury Designers Is Dismissed

 |  March 22, 2023

On Tuesday, a United States judge dismissed the pending class action lawsuit alleging that Saks Fifth Avenue, along with various fashion designers, had colluded to prevent luxury workers’ mobility and to keep wages artificially low in violation of antitrust law.

On Monday, Chief US District Judge Margo Brodie in Brooklyn, New York determined that the legal action brought forth by three luxury retail employees at Saks was no longer applicable due to its exceeding a four-year window for filing. In addition, not enough evidence was provided on behalf of a fourth employee to show any potential harm to industry competition. Consequently, the case was dismissed, Reuters reported. 

Read more: France: Antitrust regulator raids luxury watch retailers

The court granted the plaintiffs’ attorneys the ability to file an amended complaint, however, no new filing was made and the case was officially concluded on Tuesday.

The US Justice Department in recent years has ramped up antitrust enforcement targeting no-poach and non-solicitation agreements in labor markets. The Federal Trade Commission is weighing a proposal to ban non-compete clauses in employment agreements.