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US: Silicon Valley served non-compete class action

By  |  January 19, 2014

Tens of thousands of employees in Silicon Valley are reportedly hoping to successfully fight major corporations including Google, Apple, Adobe and Intel as an appeals judge confirmed class action status for the plaintiffs, say reports.

The lawsuit accuses the tech giants of violating antitrust law through non-compete clauses, which would mean the companies colluded and agreed to not hire each other’s employees. The case was certified as a class action last October, but the decision was appealed by the defendants.

The 9th Circuit Court of Appeals sided with the plaintiffs, however, and the class action will proceed.

The employees claim the companies partook in an “overarching conspiracy” with non-compete agreement to keep wages low. Reports say damages could reach up to $9 billion.

US District Judge Lucy Koh first certified the class action case last October; Judge Koh is also presiding over patent infringement trials between Apple and Samsung.

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