In what has become one of the most dragged-on lawsuits in the tech company’s history, Google Inc. (NASDAQ:GOOG), along with Apple Inc., Intel Corp, as well as Adobe Systems, has reached a new agreement with plaintiffs that may result in the conclusion of the four year old lawsuit.
Google Inc., Apple Inc., Intel Corp, as well as Adobe Systems, had come under fire in 2011 after their ex-employees filed an antitrust lawsuit of a class action significance in the court of law, accusing the companies of limiting mobility of jobs for the employees to transfer from one company to the other. According to the plaintiffs, this was done to keep quality employees and engineers within the firms without risking transfers and to keep pays at a cheaper rate.
The case has received heavy media attention ever since its filing back in 2011 and the payout is expected to be significant considering the tech companies involved. The four companies involved are perhaps the biggest the tech industry has to offer, hence it is logically being presumed the payout will also be grand and as a result all eyes are on the case and its outcome. Also, it was anticipated the case would offer a revelation into the workings of these A-list companies and that is why this lawsuit has attracted much attention and received great publicity.
The payout is definitely huge. Last year, a settlement of $324.5 million was proposed by the four companies in the court of law. However, it was rejected by Judge Lucy Koh after one of the plaintiffs deemed it “too low” considering the repute and stature of the firms involved.
The new settlement, however, may be decided at $415 million, which all the companies are expected to pay jointly to the plaintiffs. According to sources close to the negotiations, this new settlement has been approved by the former employee who had rejected the previous settlement.
The infamous lawsuit has gained much attention ever since its filing in 2011. It was filed after significant proof of the plaintiffs’ case was presented in the court of law, incriminating the four tech giants aforementioned. Most of the incriminating evidence comprised of emails exchanged between the four companies, who, through these emails, discussed plans to not hire employees who wanted to leave one firm for another within their group.
Judge Koh, who had rejected the earlier settlement, cited a similar case settlement of Disney in 2013, which had resulted in a proportionally larger payout. Considering the evidence of the case, Koh argued plaintiffs of the case deserved much more compensation than what was given out in the Disney case, at least $380 million.
The plaintiffs are now to file a detailed account of the settlement in which they will outline all the terms of the settlement clearly for Judge Lucy Koh’s consideration. After the outline is presented in the court, Judge Lucy Koh will then decide either to accept or to reject the settlement.
