Samsung Electronics Co Ltd and LG Electronics were accused of agreeing not to poach 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, Reuters informs.
The proposed class action, filed in a Northern California federal court by a former LG sales manager, accuses Samsung and LG of antitrust violations and driving down employee wages. The case is similar to one against Apple Inc, Google and other tech companies which settled last year for $415 million.
An LG spokesman said "no such agreement has ever existed" and the accusation was without merit. Samsung declined to comment.
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.
"There is nothing more fundamental than the ability to get fairly paid for one's worth and talents," he said.