Class action defendants quit while ahead
1 min read
While <b><i>New Electronics</b></i> hasn't reported on the class action recently laid against Adobe, Apple, Google and Intel, we have been watching proceedings with interest.
Reaching an out of court settlement before the case went to trial, it looks like the four defendants have said words to the effect of 'it's a fair cop Gov, you've got us bang to rights'. Or whatever the Silicon Valley equivalent might be.
The action claimed the four companies colluded to ensure they didn't hire engineers from each other. The logic suggested that, if these engineers did move, they would only do so for more money. By not hiring from each other, cash would be saved. That's the theory, anyway.
The scale of the action is impressive; 64,000 people were involved. The scale of the settlement is even more so; more than $300million, according to rumours. Faced with a potential damages claim of $9billion should the action have been proven, the four appear to have quit while ahead.
The interesting question will be to ask whether this was an isolated instance in the US or whether it came to light because of the companies involved. How widely spread are such collusions? And could the same thing be happening in the UK?
