Facts

The People of the State of California sued Ebay, Inc.

PLAINTIFF'S CONTENTIONS:
Plaintiff alleged that eBay and Intuit Inc. entered into an agreement not to recruit each other's employees. Plaintiff alleged that the parties' no-solicitation and no-hiring agreement violated the Sherman Act, the Cartwright Act, and the California Unfair Competition. Plaintiff alleged that, as a consequence of eBay and Intuit's agreement, employees received lowered salaries and benefits the employees might otherwise have commanded. The agreement also deprived the employees of better job opportunities at the other companies.

DEFENDANT'S CONTENTIONS:
eBay moved to dismiss the complaint.

Result

The parties reached a settlement, which provided both for injunctive and $3.75 million in monetary relief. As part of the settlement, eBay agreed to an injunction enjoining it from entering into an agreement with another entity to refrain from recruiting or competing for employees of another company, except as otherwise provided under the law.