Garrison v. Oracle Corp.

159 F. Supp. 3d 1044, 2016 U.S. Dist. LEXIS 13118, 2016 WL 393527
CourtDistrict Court, N.D. California
DecidedFebruary 2, 2016
DocketCase No. 14-CV-04592-LHK
StatusPublished
Cited by21 cases

This text of 159 F. Supp. 3d 1044 (Garrison v. Oracle Corp.) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Garrison v. Oracle Corp., 159 F. Supp. 3d 1044, 2016 U.S. Dist. LEXIS 13118, 2016 WL 393527 (N.D. Cal. 2016).

Opinion

ORDER GRANTING DEFENDANT’S MOTION TO DISMISS WITH PREJUDICE

Re: Dkt. Nos. 110, 137, 138

LUCY H. KOH, United States District Judge

Plaintiffs Greg Garrison (“Garrison”), Deborah Van Vorst (“Van Vorst”), and Sastry Hari (“Hari”) (collectively, “Plaintiffs”) bring this putative class action against Defendant Oracle Corporation (“Oracle”) for alleged violations of federal and California antitrust laws. ECF No. 105 (Second Amended Complaint, or “SAC”).1 Before the Court is Oracle’s motion to dismiss. ECF No. 110. Having considered the parties’ submissions, the relevant law, and the record in this case, the Court hereby GRANTS Oracle’s motion to dismiss with prejudice.

I. BACKGROUND

A. Factual Background

1. The Parties

Oracle is a Delaware corporation with- its principal place of business in Redwood Shores, California. SAC ¶ 22. The world’s second-largest software producer by revenue, Oracle specializes in developing and marketing computer hardware systems and enterprise software products, including its own brands of database management systems. Id. ¶ 23.

Plaintiffs are former employees of Oracle. Id. ¶¶ 16, 18, 20. Garrison worked for Oracle as a senior account manager from [1052]*1052“approximately December 2008 to June 2009.” Id. ¶¶ 16-17. Van Vorst worked for Oracle as a sales operations manager and business analyst from “approximately 2009 to August 2012.” Id. ¶¶ 18-19. Hari was a senior manager of quality assurance at Oracle from “approximately the middle of 2012 to November 2013.” Id. ¶¶ 20-21.

Plaintiffs seek to represent the following classes:

All natural persons who were employed by Oracle on a salaried basis in the technical, creative, and/or research and development fields in the United States from May 10, 2007 to the present. Excluded from the Class are: retail employees, corporate officers, members of the boards of directors, and senior executives of Oracle.
All natural persons who were employed by Oracle on a salaried basis in a manager level or above position, for product, sales, or general and administrative roles in the United States at any time from May 10, 2007 to the present. Excluded from the Class are: retail employees[,] corporate officers, members of the boards of directors, and senior executives of Oracle.

Id. ¶ 64.

2. In re High-Tech Employee Antitrust Litigation

Here, Plaintiffs allege that Oracle conspired with Google, Inc. (“Google”), Intuit Inc. (“Intuit”), Adobe Systems, Inc. (“Adobe”), International Business Machines Corp. (“IBM”) and “various other technology companies,” as well as with non-technology based companies and recruiting companies, to fix and suppress employee compensation. SAC ¶¶ 2-3. As the factual and procedural history of In re High-Tech Employee Antitrust Litigation (“High-Tech”), as well as the U.S. Department of Justice’s (“DOJ”) investigations and complaints, are relevant to this action, the Court briefly summarizes the background of that litigation below. See SAC ¶¶ 48, 50-53 (discussing DOJ investigation).

From 2009 to 2010, DOJ’s Antitrust Division investigated the employment and recruitment practices of various Silicon Valley technology companies, including Adobe, Apple Inc. (“Apple”), Intel Corp. (“Intel”), Intuit, and Google. See High-Tech, 856 F.Supp.2d 1103, 1109 (N.D.Cal.2012). DOJ filed its complaint against Adobe, Apple, Google, Intel, Intuit, and Pixar on September 24, 2010. Id. On December 21, 2010, DOJ filed another complaint against Lucasfilm Ltd. (“Lucas-film”). See No. 11-2509, ECF No. 93-4. The defendants in these two lawsuits stipulated to proposed final judgments in which they agreed that DOJ’s complaints had stated claims under federal antitrust law and agreed to be “enjoined from attempting to enter into, maintaining or enforcing any agreement with any other person or in any way refrain from.. .soliciting, cold calling, recruiting, or otherwise competing for employees of the other person.” High-Tech, 856 F.Supp.2d at 1109-10 (quoting Adobe Proposed Final Judgment at 5). The U.S. District Court for the District of Columbia entered the stipulated proposed final judgments on March 17, 2011, and June 2, 2011, respectively. Id. at 1110.

Private plaintiffs filed five separate state court actions between May and July 2011. Following removal, transfer to San Jose to the undersigned judge, and consolidation as In re High-Tech Employee Antitrust Litigation, the High-Tech plaintiffs filed a consolidated amended complaint on September 13, 2011. Id. at 1112-13. In their complaint, the High-Tech plaintiffs alleged antitrust claims against their employers, claiming that the defendants had conspired “to fix and suppress employee compensation and to restrict employee mobility.” Id. at 1108. More specifically, the High-Tech [1053]*1053plaintiffs alleged a conspiracy comprised of “an interconnected web of express bilateral agreements.” Id. at 1110. One such agreement, the “Do Not Cold Call” agreement, involved one company placing the names of another company’s employees on a “Do Not Cold Call” list and instructing its recruiters not to cold call the employees of the other company. Id. In addition to the “Do Not Cold Call” agreements, the High-Tech plaintiffs alleged that Pixar and Lucasfilm entered into express, written agreements (1) not to cold call each other’s employees; (2) to notify the other company whenever making an offer to an employee of the other company; and (3) not to engage in “bidding wars.” Id. at 1111.

On May 17, 2013, the High-Tech plaintiffs publicly filed a number of documents in support of their supplemental motion for class certification. No. 11-2509, ECF Nos. 418, 428. One of those documents was an internal Google memo describing Google’s hiring protocols and practices as of “1.7.2008.” No. 11-2509, ECF No. 428-10 at GOOG-HIGH-TECH-00059839. At one point, the Google memo refers to certain companies on the “ ’Restricted Hiring’ list,” including Microsoft, Novell, Sun Mi-crosystems, and, as relevant here, Oracle. Id. Although DOJ began investigating Oracle with the High-Tech defendants in 2009, DOJ concluded its investigation into Oracle without filing a lawsuit on October 29, 2014. SAC ¶ 53.

3. Alleged Conspiracy in the Instant Lawsuit

Plaintiffs allege a conspiracy among Oracle, other technology companies, the technology departments of non-technology-based companies, and recruiting companies “to fix and suppress employee compensation, and impose unlawful restrictions on employee mobility.” SAC ¶¶ 2-4, 9. As part of this conspiracy, Oracle allegedly entered into a series of anti-solicitation “Secret Agreements.” Id. ¶ 2. Other than the senior executives who “actively managed and enforced” the Secret Agreements, Oracle employees “were not apprised of any of these Secret Agreements and did not consent to this restriction on their mobility of employment.” Id. ¶¶ 34, 57.

Plaintiffs allege three types of Secret Agreements.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
159 F. Supp. 3d 1044, 2016 U.S. Dist. LEXIS 13118, 2016 WL 393527, Counsel Stack Legal Research, https://law.counselstack.com/opinion/garrison-v-oracle-corp-cand-2016.