Hagens Berman represented a class of animators and other related workers impacted by an alleged scheme to limit compensation increases and career advancement opportunities across the animation industry. On June 5, 2017, the court granted final approval of the parties’ settlement agreements in the antitrust lawsuit, including a $5.9 million settlement with BlueSky, a $13 million settlement with Sony, a $50 million settlement with DreamWorks and a $100 million settlement with Disney.
WHAT WAS THE LAWSUIT ABOUT?
The class alleged that the visual effects and animation companies conspired to restrain competition in order to suppress payment to animators and other related workers, cheating these employees out of bidding competition.
According to the suit’s allegations, the animation companies secretly agreed to work together to deprive thousands of their employees better compensation and deny them opportunities to advance their careers at other companies, doing so by limiting recruitment activities that otherwise would have existed. This included the companies allegedly agreeing to not actively recruit employees from each other — also known as an anti-solicitation scheme.
The lawsuit alleged that although the anti-solicitation scheme may have started in Northern California, the scheme metastasized beyond that region. Pixar’s Vice President of Human Resources, Lori McAdams, wrote in 2005: “With regard to ILM, Sony, Blue Sky, etc., . . . we have a gentleman’s agreement not to directly solicit/poach from their employee pool.” Another individual allegedly involved in the scheme wrote in an email, “I know you are adamant about keeping a lid on rising labor costs,” according to the complaint.
CASE TIMELINE
On June 5, 2017, Judge Lucy Koh granted final approval of the parties’ settlement agreements, including a $5,950,000 settlement with BlueSky, a $13 million settlement with Sony, a $50 million settlement with DreamWorks and a $100 million settlement with Disney.
Dreamworks Animation agreed to pay $50 million to settle a class action accusing it of perpetuating a "no poach" agreement with other studios over the hiring of animators.
U.S. District Court Judge Lucy Koh certified a class of animation and visual effects workers, allowing the case to proceed as a class action against all defendants. In an 80-page opinion, Judge Koh found that there was “copious” evidence that the defendants agreed to not solicit other defendants’ employees, and agreed to coordinate compensation policies. Judge Koh also found that the evidence supported plaintiffs’ argument that defendants’ conduct suppressed compensation across the class of animation and visual effects workers.
Recently, a settlement was reached with defendant Blue Sky. Plaintiffs filed their Motion for Preliminary Approval of Settlement with Blue Sky on March 31, 2016.
Plaintiffs filed their motion for class certification.
Co-Lead Counsel Hagens Berman files amended class action complaint.
Judge Koh denied defendants’ motion to dismiss the complaint.
