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US: Lawsuit accuses Samsung, LG of agreeing to not poach each other’s employees

 |  September 12, 2016

Samsung Electronics and LG Electronics were accused of agreeing to avoid poaching each other’s US employees, according to a US civil lawsuit filed last week, in what has become a familiar allegation in Silicon Valley.

The proposed class action, filed in a Northern California federal court by an LG sales manager, accuses Samsung and LG of antitrust violations and driving down employee wages. The case is similar to one against Apple Inc, Google and other tech companies which settled last year for $415 million.

The plaintiff, A. Frost, says in the lawsuit that a recruiter contacted Frost via LinkedIn in 2013, seeking to fill a position with Samsung.

According to the lawsuit, the recruiter then informed Frost the same day: “I made a mistake! I’m not supposed to poach LG for Samsung!!! Sorry! The two companies have an agreement that they won’t steal each other’s employees.”

It is “implausible” that such a deal in the United States could have been reached without the consent of each company’s corporate parent in South Korea, says the lawsuit, which does not state a specific damages amount.

Of course, the lawsuit might remind you of a similar one that was filed against Apple, Google, and a number of other large tech companies last year that was eventually settled for $415 million. According to the plaintiffs, this anti-poaching agreement was made in an effort to keep wages relatively low, and centers around emails sent from Apple’s late co-founder Steve Jobs to Google executive Eric Schmidt, which said that Google was “relentlessly recruiting” from Apple’s iPod team, and asked for the poaching to stop.

Full Content: Digital Trends

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Judge Appoints Law Firms to Lead Consumer Antitrust Litigation Against Apple Judge Appoints Law Firms to Lead Consumer Antitrust Litigation Against Apple

Judge Appoints Law Firms to Lead Consumer Antitrust Litigation Against Apple

 |  December 22, 2024

In a significant development in the ongoing antitrust battle against Apple, a federal judge in New Jersey has designated six law firms to represent millions of consumers alleging that the tech giant has monopolized the smartphone market. The appointments were made by U.S. District Judge Julien Xavier Neals, who named Hagens Berman Sobol Shapiro, Girard Sharp, Seeger Weiss, Carella Byrne Cecchi Brody & Agnello, Susman Godfrey, and Hausfeld as lead counsel, according to Reuters.

The decision resolves a competition among the firms for leadership in the case, which represents iPhone purchasers directly affected by Apple’s alleged monopolistic practices. The appointed firms stand to earn substantial legal fees should they secure a favorable settlement or judgment against the company.

Per Reuters, the claims brought forward by consumers align with a March lawsuit filed by the U.S. Justice Department. Both suits contend that Apple has implemented measures to restrict consumer choice in the mobile device market and for associated services such as digital wallets and messaging platforms. Apple has denied the allegations and did not immediately respond to requests for comment.

Read more: Japan Adopts Ordinance to Regulate Tech Giants Apple and Google

Legal Teams with Proven Track Records

The law firms selected to lead the case have achieved significant victories in high-profile antitrust and consumer protection lawsuits. For instance, Hagens Berman has played a key role in securing a tentative $2.8 billion settlement in lawsuits against the National Collegiate Athletic Association, while Hausfeld was instrumental in obtaining a $2.7 billion settlement in antitrust litigation against Blue Cross Blue Shield. Susman Godfrey, another appointed firm, was co-lead counsel in Dominion Voting Systems’ defamation case against Fox News, which settled for $787 million.

Meanwhile, Apple’s defense team features legal heavyweights from Kirkland & Ellis and Gibson, Dunn & Crutcher.

Broader Legal Landscape

Judge Neals previously appointed a separate group of law firms in October to represent consumers who purchased iPhones through mobile carriers. That legal team includes Schneider Wallace Cottrell Konecky, Berger Montague, Lockridge Grindal Nauen, and Spector Roseman & Kodroff. Additionally, three other firms—Korein Tillery, MoloLamken, and Kellogg, Hansen, Todd, Figel & Frederick—will lead a proposed class action representing buyers of Apple Watches, Reuters reported.

Source: Reuters