Case Details

Year Initiated/Committed

2012

Year Resolved

2014

Settlement Amount

$3.5 million damages, $300,000 for damage to the state's economy, $250,000 civil penalties

Court

U.S. District Court for the Northern District of California

Docket Number

CV12-5874

Lead State

CA

Participating States

CA

Defendant(s)

EBay, Inc.

Case Description

State filed suit (simultaneous with USDOJ suit) alleging EBay and Intuit agreed from 2008 to 2009 not to hire one another’s employees. This agreement, allegedly enforced at the highest levels in the companies, prevented employees from seeking positions at the other companies. USDOJ filed a separate suit, but California’s seeks to enforce California laws which contain stronger protections against anti-competitive conduct than federal law. California reached a settlement with eBay, under which eBay will pay $3.5 million into a settlement fund, which will include a $300,000 to the state for the harm the anticompetitive conduct caused to the state’s economy, which is the first time a state antitrust settlement has explicitly recovered additional funds for general harm to the economy. A portion of the settlement fund will be used to pay restitution to individuals employed in California by eBay or Intuit since 2005. Restitution payments will be made to three distinct pools of current and former employees. The first pool of approximately forty individuals who were employed by Intuit and considered for but not offered a position at eBay, will receive between $5,000 and $10,000 each. The second pool of approximately 950 individuals who were employed by Intuit and applied for but were not offered a position at eBay, will receive between $1,000 and $1,500 each. The third pool includes current and former employees who fall within the terms of the settlement but are not included in the first or second pool. While these individuals did not apply for jobs at the other company, they may have been indirectly affected by the anticompetitive conduct and will receive a maximum payment of $150. In addition, eBay will pay $250,000 in civil penalties. eBay has also agreed to not participate in a similar “no-poach†agreement in the future and for the next five years, the company must provide the California Attorney General’s office with an annual report describing any violation or potential violation of the settlement. eBay must also provide annual information for the next five years about the meaning and requirements of the settlement to officers, directors, human resources managers and senior managers who supervise employee recruiting, solicitation, or hiring efforts.