WGA abandons legal action against CAA, WME and UTA of the state court and has filed a new complaint with the federal government – Deadline

UPDATE with UTA response:WGA East and WGA West dropped their lawsuits against Big 4 talent agencies and responded to counterclaims in the federal antitrust case that CAA, WME and UTA had filed against the guild. Click on the link below to read the counterclaims.

The guild filed its original complaint on April 17 in the Los Angeles Superior Court, claiming that the packaging costs violated California's fiduciary duty and unfair competition laws. The Big 4 agencies – UTA, CAA, WME and ICM Partners – filed an antitrust lawsuit against the WGA in June, claiming that the guild was engaged in an "illegal group boycott". These lawsuits were filed in a US District Court in Los Angeles.

"Over the years, the major agencies have repeatedly violated the federal antitrust law by conspiring to set the price of packaging costs," said WGA West President David A. Goodman on Monday. "Their current campaign to preserve the packaging cost model by arming the smaller, more powerful agencies is also breaking the law. We are simply asking the court to prevent these agencies from illegally enriching themselves at the expense of the writers. "

UTA was the first to issue a statement: "The WGA's rejection of its own lawsuit in a state court is now a total retreat for the Guild leaders, who were well aware they would have been defeated in court in a few weeks. The lawsuit represented the WGA's inconsiderate and poorly executed campaign that continues to harm writers, who work needlessly without effective representation. The new claims are just as inconsiderate, vitriolic and unfounded. UTA is confident that they will eventually be sent back. "

ICM Partners said Monday that it had also been removed from the lawsuit, but the guild did not mention the agency in a memo addressed to members.

"There is a new development in our campaign to end the conflicting practices of the agencies," said the guild leaders today to their members. "In June, WME, CAA and UTA launched frivolous antitrust suits against WGAW and WGAE in federal court. Today, the guilds responded to these actions by filing their own antitrust and racketeering claims against WME, CAA and UTA in the District Court. Our filings include the required response to the antitrust charges against us, while seizing the opportunity to remedy their antitrust violations. We consolidated in federal action the claims of the law of our state of California and, as a result, we withdrew the lawsuit separate from the state. Although the guild's actions are limited to the three agencies that have sued us, there are ongoing lawsuits against agencies that have also received our termination and withdrawal letters. "

Here is a summary of the claims contained in the federal filings against the agencies:

• Packaging costs encroach on the fiduciary duty that agents owe to their author clients under California law and deprive them of the conflict-free representation to which they are entitled.

• Breach of the fiduciary duty by the agencies is also an implied fraud within the meaning of the California Civil Code.

• Packaging costs are bribes illegal from an employer to a representative of his employees, in violation of Article 302 of the Federal Labor Relations Act. The repeated violations of Article 302 by the agencies constitute both an unfair commercial practice under California law and a "racketeering activity model" within the meaning of the federal law Racketeer Influenced and Corrupt Organizations ("Civil RICO"). ").

• Agencies have violated federal and state antitrust laws by: 1) conspiring to set the cost of packaging fees in Form 3-3-10; and (2) engage in an illegal group boycott by refusing to bargain with the Guild on an individual basis and forcing the other agencies to join the group boycott.

According to the guild, "The suits ask the court for an order prohibiting agencies from collecting packaging fees; require agencies to provide accounting for all packaging transactions involving members of the Guild; and restitution of profits generated by illegal and unfair packaging costs. The suit also seeks triple damages and other remedies for antitrust violations by the agencies.

"The WGA will continue to use all appropriate methods, including litigation, to align agency interests with those of writers. We remain committed to moving the negotiation process forward with the remaining unsigned agencies. "

Read the WGA counterclaims by clicking on the links below:

WME

CAA

UTA