Ryan v. Microsoft Corp.

147 F. Supp. 3d 868, 2015 U.S. Dist. LEXIS 158944, 2015 WL 7429495
CourtDistrict Court, N.D. California
DecidedNovember 23, 2015
DocketCase No. 14-CV-04634-LHK
StatusPublished
Cited by20 cases

This text of 147 F. Supp. 3d 868 (Ryan v. Microsoft 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
Ryan v. Microsoft Corp., 147 F. Supp. 3d 868, 2015 U.S. Dist. LEXIS 158944, 2015 WL 7429495 (N.D. Cal. 2015).

Opinion

ORDER GRANTING MOTION TO DISMISS WITH PREJUDICE

Re: Dkt. No. 67

LUCY H. KOH, United States District Judge

Before the Court is Defendant Microsoft Corporation’s motion to dismiss. ECF No. [872]*87267. -Having considered the. submissions of the parties, the relevant law, and the record in this case, the" Court hereby GRANTS Defendant’s motion to dismiss with prejudice.

I. BACKGROUND

A, Factual Background

1. The Parties

Plaintiff Deserae Ryan (“Ryan”) and Plaintiff Trent Rau (“Rau”), (collectively, “Plaintiffs”), bring this putative class action against Defendant Microsoft Corporation (“Defendant” or “Microsoft”) for alleged violations of state and federal antitrust laws. Plaintiff Ryan, an individual, is a resident of the State of California. First Amended Compl. (“FAC”), ECF No. 61, ¶ 16. Plaintiff Ryan worked for Microsoft as a “Senior Product Manager” from April 2007 to September 2012 in Redmond, Washington. Id. ¶ 15. Plaintiff Rau, an individual, is 'a resident of the State of Washington. Id. ¶ 18. Plaintiff Rau worked for Microsoft as á “Lead Systems Engineer Senior” from June 2006 to June 2010. Id. ¶ 17.

Defendant Microsoft is a Washington corporation with its principal place of business in Redmond, Washington. Id. ¶ 19.

2. In re High-Tech Employees Litigation

Here, Plaintiff's allege that Defendant Microsoft conspired with “other technology companies” in ’ various “Anti-Solicitation and Restricted Hiring” agreements. As the factual and procedural history of In re High-Tech Employees Litigation, No. 11-CV-02509-LHK, and the DOJ investigations and complaints are relevant to this action, the Court briefly summarizes the background of that litigation below.

From 2009 to 2010, the Antitrust Division of the DOJ investigated the employment and recruitment practices of various Silicon Valley technology companies, including Adobe Systems, Inc., Apple, Inc., Google, Inc., Intel Corp., and Intuit, Inc. See In re High-Tech Employee Litig., 856 F.Supp.2d 1103, 1109 (N.D.Cal.2012). The DOJ filed its complaint against Adobe, Apple, Google, Intel, Intuit, and Pixar on September 24, 2010. Id. On December 21, 2010, the DOJ filed another complaint against Lucasfilm and Pixar. See No. 11-CV-2509-LHK, ECF No. 65. The defendants stipulated to proposed final judgments in which they agreed that the 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 in March and June of 2011, Id. at 1110.

The High-Tech plaintiffs- filed five separate state- court actions between May and July of 2011. Following removal, transfer to San Jose to the undersigned judge, and consolidation,- 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 plaintiffs alleged a conspiracy comprised of “an interconnected web of express bilateral agreements.” Id. at 1110. One agreement, the “Do Not Cold Call” agreement involved one company placing the names of the other company’s employees on a “Do Not Cold Call” list and instructing its recruiters not-to cold-call [873]*873the employees of the other company. Id. In addition to the “Do Not Cold Call” agreements, the High-Tech plaintiffs also alleged that Pixar and Lucasfilm,- entered into express, written agreements to (1) not 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.

3. Alleged Conspiracy in the’Iristant Action

In their original complaint, Plaintiffs alleged that Microsoft in May 2007 “was one of several parties to an Anti-Solicitation Agreement otherwise known as the ‘Do Not Cold Call’ list,” ECF No. 1 ¶ 28, and that Microsoft allegedly enteréd' into a “Restrictive Hiring Agreement” with “several other technology companies,” id. ¶ 36.

In the First Amended Complaint, Plaintiffs appear to have abandoned their allegations that Microsoft was a party to two agreements, in May 2007. Instead, Plaintiffs now allege that Microsoft entered into a series of independent anti-solicitation agreements with various companies. See FAC. Plaintiffs allege that each time Microsoft entered into an anti-solicitation agreement with a company, Microsoft added the company to an internal “Hands-Off List.” Id. ¶ 33. The Hands-Off List allegedly consisted of those companies “with whom Microsoft entered into a Secret Agreement to restrict or prohibit the solicitation or hiring of each other’s employees.” Id. ¶ 34. The First Amended Complaint alleges that Microsoft entered into the following specific agreements:

• On April 19, 2005, Microsoft entered into a mutual non-solicitation agreement with Transméta and added Transmeta to the Hands-Off List. Id. ¶ 29.
• In 2005 or 2006, Microsoft reached “an understanding” with Dell that Microsoft and Dell would not “poach” each ' other’s employees, and Microsoft added Dell to the Hands-Off List. Id. ¶ 31.
• In 2005, Microsoft entered into a mutual non-solicitation agreement with Yahoo! and added Yahoo! to the Hands-Off List. Id. ¶ 32; ECF No. 38, Ex. 3.1
• By 2007, Hewlett Packard (“HP”) was included on the Hands-Off List. FAC ¶ 34. In June 2009, Microsoft renewed a “Secret Agreement” with HP. Id. ¶ 41. The First Amended Complaint does not specify when the “Secret Agreement” began or when HP was added to the Hands-Off List.'
[874]*874• On an unspecified date, Microsoft and Avanade agreed “to refrain from soliciting each other’s employees.” Id. ¶ 38. By 2007, Avanade was included on the Hands-Off List. Id. ¶ 34. The First Amended Complaint does not allege when Avanade was added to the Hands-Off List.
• In 2007, Microsoft entered into mutual non-solicitation agreements with Nvi-dia, ATI, and Intel and added them to the Hands-Off List. Id. ¶ 35. In June 2009, Microsoft renewed its agreement with Nvidia. Id. ¶ 41.
• By 2007, Microsoft agreed with Google “not to directly recruit or ‘cold-call’ each other’s employees, and to also refrain from hiring each other’s manager-level and above employees.” Id. ¶ 36. The First Amended Complaint does not specify when this agreement began.

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Bluebook (online)
147 F. Supp. 3d 868, 2015 U.S. Dist. LEXIS 158944, 2015 WL 7429495, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ryan-v-microsoft-corp-cand-2015.