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Apple shareholder R. Andre Klein is suing Apple on behalf of all of its shareholders over the company's anti-poaching agreements, reports Patently Apple.
The lawsuit claims that Apple's no-hire agreements with other companies including Google, Adobe, and Intel caused the company to grossly mismanage its assets, mislead its investors, breach the duty of "honest services", and hurt its overall value. The suit seeks damages for all shareholders through a jury trial, and names a number of Apple executives as individual defendants including current CEO Tim Cook and even former CEO Steve Jobs.
The suit follows a rejection of a $324 million settlement proposal between the four tech companies and tech workers by a California court. In the filing's court documents, Judge Lucy Koh stated that the total settlement "falls below the range of reasonableness" when compared a $20 million settlement given last year by Pixar, Lucasfilm, and Intuit. Comparatively speaking, Apple and others should pay a minimum of $380 million.
Employees of the various tech companies originally brought forth a lawsuit against the companies no-hire agreements in 2011, with a trial revealing anti-poaching tactics dating back to 2005. The United States Department of Justice intervened in the case in 2010, forcing the companies to stop engaging in anti-poaching agreements. However, the class-action civil lawsuit brought against the aforementioned companies by over 64,000 employees will remain open until a settlement has been reached.
Top Rated Comments
I'm not sure if you've both been following this story, but this isn't a random lawsuit. The big companies all got together to stop them 'poaching' their other employees. This essentially means that if you were working for Apple, Google, or Adobe (to name a few) you couldn't get hired by the other company. There's even an email shown where Steve Jobs was going mad at Google over them trying to hire an Apple employee.
This severely screws over the hard-working employee. It means that they don't have an opportunity to work in another large tech company. It also means they don't have much to go on when negotiating for wage, because they're not going to be offered a job by their direct competitors.
It's evil, immoral, and shameful.
Specious claims, as: "defendants' actions allegedly forced Apple to spend a huge amount on expenditures related to "years of lost opportunities to hire more qualified employees that were employed at other companies".
This is nothing but a claim based on...nothing, saying IF Apple could have poached, they would have been more profitable? Is that a crystal ball prediction? One could easily argue the opposite considering Apple's financial growth over a longer period.
If there's a settlement and Apple pays out 100 million to share holders, the company is suddenly worth 100 million less. The shareholders gain nothing.
And suing the company doesn't affect market value?!?
Just be honest, homie wants some money
And furthermore, as a shareholder, I can say that... It was the WORKERS who were harmed, not me. I don't deserve %^%] over this. This guy is a dope.