A California federal district court has preliminarily approved settlement of a class action by high-tech workers who claimed several major technology companies unlawfully agreed not to poach each other's employees, thereby reducing employee mobility and suppressing compensation. In May 2014, the plaintiffs settled with three prominent high-tech companies for about $20 million. In August, the court rejected a proposed settlement between plaintiffs and four high-tech heavy-weights for $324.5 million, comparing class members' proportional share to the prior settlement agreement and finding it below the range of reasonableness. In preliminarily approving the $415 million settlement, the court observed that it "appear[ed] to be the result of arm's-length negotiations among experienced counsel" and the settlement amount was "substantial, particularly in light of the risk that the jury could find no liability or award no damages." The court ordered that the class be notified and set a final approval hearing for July 9, 2015.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.