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Why Samsung and LG Are Being Sued Over Employee Recruitment

September 12, 2016

Newest Innovations In Consumer Technology On Display At 2014 International CESNewest Innovations In Consumer Technology On Display At 2014 International CES

Samsung Electronics and LG Electronics were accused of agreeing to avoid poaching each other’s U.S. employees, according to a U.S. civil lawsuit filed last week, in what has become a familiar allegation in Silicon Valley.

The proposed class action, filed in a Northern California federal court by an LG sales manager, accuses Samsung and LG of antitrust violations and driving down employee wages. The case is similar to one against Apple (AAPL), Google (GOOG), and other tech companies which settled last year for $415 million.

Representatives for Samsung and LG could not immediately be reached for comment on Monday.

The plaintiff, A. Frost, says in the lawsuit that a recruiter contacted Frost via LinkedIn (LNKD) in 2013, seeking to fill a position with Samsung.

According to the lawsuit, the recruiter then informed Frost the same day: “I made a mistake! I’m not supposed to poach LG for Samsung!!! Sorry! The two companies have an agreement that they won’t steal each other’s employees.”

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It is “implausible” that such a deal in the United States could have been reached without the consent of each company’s corporate parent in South Korea, says the lawsuit, which does not state a specific damages amount.