• Home
  • News
  • Fortune 500
  • Tech
  • Finance
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
TechFortune 500

Netflix Is Being Sued for Poaching Execs From This Hollywood Studio

By
Jeff John Roberts
Jeff John Roberts
Editor, Finance and Crypto
Down Arrow Button Icon
By
Jeff John Roberts
Jeff John Roberts
Editor, Finance and Crypto
Down Arrow Button Icon
September 16, 2016, 4:26 PM ET
The Netflix logo is shown in this illustration photograph in Encinitas, California
The Netflix logo is shown in this illustration photograph in Encinitas, California October 14, 2014. REUTERS/Mike Blake/File Photo - RTX2B4O8Photograph by Mike Blake — Reuters

Netflix persuaded two programming executives to jump ship from 21st Century Fox this year, a move the latter claims was illegal because of clauses in the employees’ contracts. Now, the studio is suing Netflix, claiming the online streaming giant knew about those clauses and sought to poach the executives anyways.

The lawsuit, filed in state court in Los Angeles, demands unspecified financial damages and an injunction ordering Netflix not to interfere with its employment contracts. The complaint, which you can view here, reads:

“[Netflix ran] a brazen campaign to unlawfully target, recruit, and poach valuable Fox executives by illegally inducing them to break their employment contracts with Fox to work at Netflix,” it says. “As a direct and proximate result of Netflix’s conduct, Fox has suffered great and irreparable harm.”

The executives in question are Tara Flynn, who Netflix hired as a drama programming development executive last week, and Marcos Waltenberg, who has worked in a similar role since January.

Get Data Sheet, Fortune’s daily technology newsletter.

The lawsuit, which comes as Netflix continues to expand its rosters of shows, reflects the highly competitive of the video industry as more and more companies seek to produce original content.

The lawsuit is also remarkable given California’s strict laws against non-compete clauses. Unlike in other states, California does not permit companies to bar employees from changing jobs. Last year, a federal judge ordered giant tech companies to pay $415 million for organizing an anti-poaching conspiracy.

The case, however, names Netflix as a defendant—not Flynn and Waltenberg—which could allow 21st Century Fox to claim it is not enforcing an illegal non-compete agreement. Instead, the company cites illegal interference with its contracts, as well as violation of California unfair competition law.

Netflix, for its part, blasted Fox’s contracts as unenforceable.

“We intend to defend this lawsuit vigorously. We do not believe Fox’s use of fixed term employment contracts in this manner are enforceable,” said spokesperson Anne Marie Squeo. “We believe in employee mobility and will fight for the right to hire great colleagues no matter where they work.”

The lawsuit was first reported by the Wall Street Journal.

This story was updated at 6:20pm ET with details of the complaint and 21st Century Fox’s statement.

About the Author
By Jeff John RobertsEditor, Finance and Crypto
LinkedIn iconTwitter icon

Jeff John Roberts is the Finance and Crypto editor at Fortune, overseeing coverage of the blockchain and how technology is changing finance.

See full bioRight Arrow Button Icon

Latest in Tech

AIData centers
HP’s chief commercial officer predicts the future will include AI-powered PCs that don’t share data in the cloud
By Nicholas GordonDecember 7, 2025
41 minutes ago
Future of WorkJamie Dimon
Jamie Dimon says even though AI will eliminate some jobs ‘maybe one day we’ll be working less hard but having wonderful lives’
By Jason MaDecember 7, 2025
5 hours ago
CryptoCryptocurrency
So much of crypto is not even real—but that’s starting to change
By Pete Najarian and Joe BruzzesiDecember 7, 2025
10 hours ago
Elon Musk
Big TechSpaceX
SpaceX to offer insider shares at record-setting $800 billion valuation
By Edward Ludlow, Loren Grush, Lizette Chapman, Eric Johnson and BloombergDecember 6, 2025
24 hours ago
Big TechApple
Apple rocked by executive departures, with chip chief at risk of leaving next
By Mark Gurman and BloombergDecember 6, 2025
1 day ago
Nvidia CEO Jensen Huang said China is better equipped for an AI data center buildout than the U.S.
AITech
Nvidia CEO says data centers take about 3 years to construct in the U.S., while in China ‘they can build a hospital in a weekend’
By Nino PaoliDecember 6, 2025
1 day ago

Most Popular

placeholder alt text
AI
Nvidia CEO says data centers take about 3 years to construct in the U.S., while in China 'they can build a hospital in a weekend'
By Nino PaoliDecember 6, 2025
1 day ago
placeholder alt text
Economy
The most likely solution to the U.S. debt crisis is severe austerity triggered by a fiscal calamity, former White House economic adviser says
By Jason MaDecember 6, 2025
24 hours ago
placeholder alt text
Real Estate
The 'Great Housing Reset' is coming: Income growth will outpace home-price growth in 2026, Redfin forecasts
By Nino PaoliDecember 6, 2025
1 day ago
placeholder alt text
Big Tech
Mark Zuckerberg rebranded Facebook for the metaverse. Four years and $70 billion in losses later, he’s moving on
By Eva RoytburgDecember 5, 2025
2 days ago
placeholder alt text
Economy
JPMorgan CEO Jamie Dimon says Europe has a 'real problem’
By Katherine Chiglinsky and BloombergDecember 6, 2025
23 hours ago
placeholder alt text
AI
Nvidia's CEO says AI adoption will be gradual, but when it does hit, we may all end up making robot clothing
By Marco Quiroz-GutierrezDecember 6, 2025
1 day ago
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
Sections
  • Finance
  • Leadership
  • Success
  • Tech
  • Asia
  • Europe
  • Environment
  • Fortune Crypto
  • Health
  • Retail
  • Lifestyle
  • Politics
  • Newsletters
  • Magazine
  • Features
  • Commentary
  • Mpw
  • CEO Initiative
  • Conferences
  • Personal Finance
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map

© 2025 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.