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$4.7M in Fees Sought in Animation Workers Antitrust Class Action

September 19, 2016 | Posted in : Fee Award Factors, Fee Request

A recent Law 360 story, “Attys Seek $4.7M in Sony, Fox No-Poach Class Action,” reports that the counsel for a class action accusing Fox, Sony and other major studios of illegally conspiring not to hire each other’s animators has asked a federal court for an award of $4.7 million in attorneys' fees after getting approval of an $18.9 million settlement.

In addition to securing the settlement, the attorneys representing the class successfully fended off a Ninth Circuit appeal and convinced U.S. District Judge Lucy H. Koh to certify the class in an 80-page opinion that noted the extensive documentary evidence, economic theory, data, and expert statistical modeling undertaken by the counsel, they said.

“This request is reasonable given the results thus far, class counsel’s dedication and zealous advocacy on behalf of the class, the risks faced in litigating this case, and the vigorous opposition posed by corporate defendants who are represented by sophisticated defense counsel,” the attorneys said.

The suit, filed in September 2014, claims animation studios entered into a secret “gentleman's agreement” not to actively solicit each other’s employees or get into bidding wars over employees.  Those deals, the complaint alleges, suppressed salaries across the industry in violation of antitrust laws.

The suit targeted some major studios like The Walt Disney Co., Pixar Inc., DreamWorks Animation SKG Inc., Lucasfilm Ltd. and ImageMovers Digital LLC.  Together with Sony Pictures, the group is behind blockbuster features like “Zootopia,” “Toy Story,” “Shrek,” “Harry Potter,” “Wall-E” and “The Smurfs.”

The allegations came to light after the U.S. Department of Justice launched a probe into the hiring practices of Silicon Valley businesses.  In September, Judge Koh approved a $415 million settlement in a separate class action accusing Apple Inc., Google Inc. and others of striking a deal not to poach each other’s software engineers.

Earlier this year, the animators, while pushing for class certification in their case, told the court that the studios' collusion dates back several years and suppressed their pay by as much as 30 percent in some years.

In July, Judge Koh gave her preliminary assent to a combined $19 million in settlements in the case.

Twentieth Century Fox Film Corp. subsidiary Blue Sky Studios said in March it had reached a deal with the 10,000-strong proposed class of animators, reporting in court papers that it would pay nearly $6 million to settle.  And in May, Sony Pictures Corp. units Sony Pictures Imageworks Inc. and Sony Pictures Animation Inc. struck a $13 million accord with the workers, according to court documents.

The case is In re: Animation Workers Antitrust Litigation, case number 5:14-cv-04062, in the U.S. District Court for the Northern District of California.