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High-Tech Employee Antitrust Litigation

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High-Tech Employee Antitrust Litigation is a 2010 United States Department of Justice (DOJ) antitrust action and a 2013 civil class action against several Silicon Valley companies for alleged "no cold call " agreements which restrained the recruitment of high-tech employees.

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116-481: The defendants were high-technology companies Adobe , Apple Inc. , Google , Intel , Intuit , Pixar , Lucasfilm and eBay , each of which was headquartered in Silicon Valley , in the southern San Francisco Bay Area of California. The civil suit was filed by five plaintiffs. It accused the tech companies of collusion between 2005 and 2009 to refrain from recruiting each other's employees. Cold calling

232-747: A $ 1 billion termination fee per their merger agreement. On June 17, 2024, the US Federal Trade Commission together with the US Department of Justice filed a lawsuit against Adobe for its subscription business model practice, citing hidden termination fees and the company pushing customers towards more expensive plans. In June 2024, after facing backlash for its changes to the terms of service , Adobe updated them to explicitly pledge it will not use customer data to train its AI models. Adobe's currently supported roster of software, online services and file formats comprises

348-419: A class action ensures that all plaintiffs receive relief and that early-filing plaintiffs do not raid the fund (i.e., the defendant ) of all its assets before other plaintiffs may be compensated. See Ortiz v. Fibreboard Corp. , 527 U.S. 815 (1999). A class action in such a situation centralizes all claims into one venue where a court can equitably divide the assets amongst all the plaintiffs if they win

464-623: A class action may avoid the necessity of repeating "days of the same witnesses , exhibits and issues from trial to trial". Jenkins v. Raymark Indus. Inc. , 782 F.2d 468, 473 (5th Cir. 1986) (granting certification of a class action involving asbestos ). Second, a class action may overcome "the problem that small recoveries do not provide the incentive for any individual to bring a solo action prosecuting his or her rights". Amchem Prods., Inc. v. Windsor , 521 U.S. 591, 617 (1997) (quoting Mace v. Van Ru Credit Corp. , 109 F.3d 388, 344 (7th Cir. 1997)). "A class action solves this problem by aggregating

580-634: A class of which the defendant is a member. Landeros v. Flood (1976) was a landmark case decided by the California Supreme Court that aimed at purposefully changing the behavior of doctors, encouraging them to report suspected child abuse. Otherwise, they would face the threat of civil action for damages in tort proximately flowing from the failure to report the suspected injuries. Previously, many physicians had remained reluctant to report cases of apparent child abuse, despite existing law that required it. Fourth, in "limited fund" cases,

696-399: A class settlement. The ruling was a response to an objector who claimed Rule 23 required that the fee petition be filed before the time frame for class member objections to be filed; and payments to the class representative violates doctrine from two US Supreme Court cases from the 1800s. As of 2010, there was no publicly maintained list of nonsecurities class-action settlements, although

812-440: A company could effectively supplement direct government regulation of securities markets and other similar markets. The second development was the rise of the civil rights movement , environmentalism and consumerism . The groups behind these movements, as well as many others in the 1960s, 1970s and 1980s, all turned to class actions as a means for achieving their goals. For example, a 1978 environmental law treatise reprinted

928-519: A company specializing in the funding and management of litigation in Australia and New Zealand. It was the biggest class-action suit in New Zealand history. The Austrian Code of Civil Procedure ( Zivilprozessordnung  – ZPO) does not provide for a special proceeding for complex class-action litigation. However, Austrian consumer organizations ( Verein für Konsumenteninformation (VKI) and

1044-457: A consolidated mass action against the pharmaceutical giant in the State of California. This opinion may arguably render nationwide mass action and class action impossible in any single state besides the defendant's home state. In 2020, the 11th Circuit Court of Appeals found incentive awards are impermissible. Incentive awards are a relatively modest payment made to class representatives as part of

1160-833: A contract or its clauses may be revoked. In two major 21st-century cases, the Supreme Court ruled 5–4 against certification of class actions due to differences in each individual members' circumstances: first in Wal-Mart v. Dukes (2011) and later in Comcast Corp. v. Behrend (2013). Companies may insert the phrase "may elect to resolve any claim by individual arbitration" into their consumer and employment contracts to use arbitration and prevent class-action lawsuits. Rejecting arguments that they violated employees' rights to collective bargaining, and that modestly-valued consumer claims would be more efficiently litigated within

1276-525: A coupon for future services or products with the defendant company) are a way for a defendant to forestall major liability by precluding many people from litigating their claims separately, to recover reasonable compensation for the damages. However, existing law requires judicial approval of all class-action settlements, and in most cases, class members are given a chance to opt out of class settlement, though class members, despite opt-out notices, may be unaware of their right to opt-out because they did not receive

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1392-542: A definitive agreement to acquire Frame.io, a leading cloud-based video collaboration platform. The transaction is valued at $ 1.275 billion and closed during the fourth quarter of Adobe's 2021 fiscal year. Adobe announced a $ 20 billion acquisition of Figma , an Adobe XD competitor, in September 2022, its largest to date. Regulatory scrutiny from the US and European Union began shortly after due to concerns that Adobe, already

1508-543: A definitive agreement to acquire privately held Efficient Frontier. In December 2012, Adobe opened a new 280,000-square-foot (26,000 m ) corporate campus in Lehi, Utah . In 2013, Adobe endured a major security breach. Vast portions of the source code for the company's software were stolen and posted online and over 150 million records of Adobe's customers were made readily available for download. In 2012, about 40 million sets of payment card information were compromised by

1624-738: A group basis. Supporters (mostly pro-business) of the high court's ruling argue its holding is consistent with private contract principles. Many of those supporters had long-since argued that class action procedures were generally inconsistent with due process mandates and unnecessarily promoted litigation of otherwise small claims—thus heralding the ruling's anti-litigation effect. In 2017, the US Supreme Court issued its opinion in Bristol-Meyer Squibb Co. v. Superior Court of California, 137 S. Ct. 1773 (2017), holding that over five hundred plaintiffs from other states cannot bring

1740-406: A hack at Adobe. A class-action lawsuit alleging that the company suppressed employee compensation was filed against Adobe , and three other Silicon Valley –based companies in a California federal district court in 2013. In May 2014, it was revealed the four companies, Adobe, Apple , Google, and Intel had reached an agreement with the plaintiffs, 64,000 employees of the four companies, to pay

1856-554: A large number of plaintiffs, independent of class action procedures. For instance, under Ontario's Condominium Act, a condominium 's governing corporation may launch a lawsuit on behalf of the owners for damage to the condominium's common elements, even though the corporation does not own the common elements. The largest class action suit in Canada was settled in 2005 after Nora Bernard initiated efforts that led to an estimated 79,000 survivors of Canada's residential school system suing

1972-552: A local rule of court. The Federal Court of Canada permits class actions under Part V.1 of the Federal Courts Rules. Legislation in Saskatchewan , Manitoba , Ontario , and Nova Scotia expressly or by judicial opinion has been read to allow for what are informally known as national "opt-out" class actions, whereby residents of other provinces may be included in the class definition and potentially be bound by

2088-428: A major player in the design software market with XD, would have too much control if it also owned Figma. At the time of the announcement to acquire Figma, Adobe's share over the creative software market and design-software market was almost a monopoly. In December 2023, the two companies called off their merger, citing the regulatory challenges as a sign to both that the deal was not likely to be approved. Adobe paid Figma

2204-423: A multitude of persons may sue on behalf of, or for the benefit of, all persons "with the same interest in the subject matter of a proceeding". The presence and expansion of litigation funders have been playing a significant role in the emergence of class actions in New Zealand. For example, the "Fair Play on Fees" proceedings in relation to penalty fees charged by banks were funded by Litigation Lending Services (LLS),

2320-442: A negative perception about subscription creative software than a positive view. The original pricing plan for Creative Cloud was $ 75 per month for the entire suite of software, though Adobe discounted the monthly cost to $ 50 for users willing to commit to at least one year of continuous subscription for Creative Cloud, and down to $ 30 per month for former CS users with the one year commitment. By 2013, Adobe decided that CS6 would be

2436-458: A number which could in turn have tripled to $ 9 billion under antitrust law. However, in late April 2014, the four remaining defendants – Apple Inc , Google , Intel and Adobe Systems – agreed to settle out of court. Any settlement was to be approved by Judge Lucy Koh . On May 23, 2014, Apple, Google, Intel, and Adobe agreed to settle for $ 324.5 million. Lawyers sought 25% in attorneys' fees, plus expenses of as much as $ 1.2 million, according to

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2552-519: A parallel class action for residents of other provinces. The first court to certify will generally exclude residents of provinces whose courts have certified a parallel class action. However, in the Vioxx litigation, two provincial courts certified overlapping class actions whereby Canadian residents were class members in two class actions in two provinces. Both decisions are under appeal. Other legislation may provide for representative actions on behalf of

2668-435: A proprietary format called Type 1 , worked on by Bill Paxton after he left Stanford. Apple subsequently developed a competing standard, TrueType , which provided full scalability and precise control of the pixel pattern created by the font's outlines, and licensed it to Microsoft . Starting in the mid-1980s, Adobe entered the consumer software market, starting with Adobe Illustrator , a vector -based drawing program for

2784-410: A public company may have losses too small to justify separate lawsuits, but a class action can be brought efficiently on behalf of all shareholders. Perhaps even more important than compensation is that class treatment of claims may be the only way to impose the costs of wrongdoing on the wrongdoer, thus deterring future wrongdoing. Third, class-action cases may be brought to purposely change behavior of

2900-553: A securities class-action database exists in the Stanford Law School Securities Class Action Clearinghouse and several for-profit companies maintain lists of the securities settlements. One study of federal settlements required the researcher to manually search databases of lawsuits for the relevant records, although state class actions were not included due to the difficulty in gathering the information. Another source of data

3016-484: A security flaw was later discovered in Photoshop CS5, Adobe sparked outrage by saying it would leave the flaw unpatched, so anyone who wanted to use the software securely would have to pay for an upgrade. Following a fierce backlash Adobe decided to provide the software patch. Adobe has been criticized for pushing unwanted software including third-party browser toolbars and free virus scanners, usually as part of

3132-490: A settlement of $ 415 million and other companies settled for $ 20 million. According to the settlement website, Gilardi & Co., LLC distributed the settlement to class members the week of December 21, 2015. Adobe Systems Adobe Inc. ( / ə ˈ d oʊ b i / ə-DOH-bee ), formerly Adobe Systems Incorporated , is an American computer software company based in San Jose, California . It offers

3248-411: A significant form of competition ... to the detriment of the affected employees who were likely deprived of competitively important information and access to better job opportunities." The DOJ also alleged that the agreements "were not ancillary to any legitimate collaboration", "were much broader than reasonably necessary for the formation or implementation of any collaborative effort", and "disrupted

3364-526: A significant reduction of overall costs. The Austrian Supreme Court , in a judgment, confirmed the legal admissibility of these lawsuits under the condition that all claims are essentially based on the same grounds. The Austrian Parliament unanimously requested the Austrian Federal Minister for Justice to examine the possibility of new legislation providing for a cost-effective and appropriate way to deal with mass claims. Together with

3480-506: A single proceeding through the efforts of the representative plaintiff(s) and appointed class counsel. The antecedent of the class action was what modern observers call "group litigation," which appears to have been quite common in medieval England from about 1200 onward. These lawsuits involved groups of people either suing or being sued in actions at common law . These groups were usually based on existing societal structures like villages, towns, parishes, and guilds. Unlike modern courts,

3596-561: A stock content marketplace founded in 2005 by Thibaud Elziere, Oleg Tscheltzoff, and Patrick Chassany which operated in 23 countries. It was run as a stand-alone website until 2019, but has since been integrated into Adobe Stock. A family of content, development, and customer relationship management products, with what Adobe calls the "next generation" of its Sensei artificial intelligence and machine learning framework, introduced in March 2019. Since 2000, Fortune has recognized Adobe as one of

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3712-482: A stylized "A" and was designed by graphic designer Marva Warnock, John Warnock's wife. Steve Jobs attempted to buy the company for $ 5 million in 1982, but Warnock and Geschke refused. Their investors urged them to work something out with Jobs, so they agreed to sell him shares worth 19 percent of the company. Jobs paid a five-times multiple of their company's valuation at the time, plus a five-year license fee for PostScript, in advance. The purchase and advance made Adobe

3828-871: A suite of software for digital marketing management. As of 2022, Adobe has more than 26,000 employees worldwide. Adobe also has major development operations in the United States in Newton , New York City , Arden Hills , Lehi , Seattle , Austin and San Francisco . It also has major development operations in Noida and Bangalore in India. The company has long been the dominant tech firm in design and creative software, despite attracting criticism for its policies and practices particularly around Adobe Creative Cloud's switch to subscription only pricing and its early termination fees for its most promoted Creative Cloud plan,

3944-481: A sum of $ 324.5 million to settle the suit. 2011 saw the company first introduce Adobe Creative Cloud , a $ 600/year subscription plan to its creative software as opposed to a one-time perpetual license payment which could often top $ 2000 for creative professionals. The initial launch of Creative Cloud alongside Creative Suite 5 users came at the same time that Adobe ran into controversy from users of Adobe's creative software, with users of Adobe software stating that

4060-569: A trial. On September 8, 2014, Judge Koh set April 9, 2015 as the actual trial date for the remaining defendants, with a pre-trial conference scheduled for December 19, 2014. Also, as of early September 2014, the defendants had re-entered mediation to determine whether a new settlement could be reached. A final approval hearing was held on July 9, 2015. On Wednesday September 2, 2015, Judge Lucy H. Koh signed an order granting Motion for Final Approval of Class Action Settlement. The settlement website stated that Adobe, Apple, Google, and Intel had reached

4176-410: A typical class action, a plaintiff sues a defendant or a number of defendants on behalf of a group, or class, of absent parties. This differs from a traditional lawsuit, in which the plaintiffs sue one or more defendants, and all of the parties are present in court. For example, a group in a class action lawsuit could be any person who ever bought a specific dangerous product; in a traditional lawsuit,

4292-441: A way to uniformly settle all of the many claims brought via a mass action. Some states permit plaintiff's counsel to settle for all the mass action plaintiffs according to a majority vote, for example. Other states, such as New Jersey, require each plaintiff to approve the settlement of that plaintiff's own individual claims. Class actions were recognized in "Halabi" leading case ( Supreme Court , 2009). Class actions became part of

4408-544: A wide range of programs from web design tools, photo manipulation and vector creation, through to video/audio editing, mobile app development, print layout and animation software. It has historically specialized in software for the creation and publication of a wide range of content, including graphics, photography, illustration, animation, multimedia/video, motion pictures, and print. Its flagship products include Adobe Photoshop image editing software; Adobe Illustrator vector-based illustration software; Adobe Acrobat Reader and

4524-465: Is US Bureau of Justice Statistics Civil Justice Survey of State Courts , which offers statistics for the year 2005. Proponents of class actions state that they offer a number of advantages because they aggregate many individualized claims into one representational lawsuit . First, aggregation can increase the efficiency of the legal process, and lower the costs of litigation. In cases with common questions of law and fact, aggregation of claims into

4640-709: Is a class-action lawsuit on behalf of over 64,000 employees of Adobe , Apple Inc. , Google , Intel , Intuit , Pixar and Lucasfilm (the last two are subsidiaries of Disney ) against their employer alleging that their wages were repressed due to alleged agreements between their employers not to hire employees from their competitors. The case was filed on May 4, 2011 by a former software engineer at Lucasfilm and alleges violations of California's antitrust statute, Business and Professions Code sections 16720 et seq. (the "Cartwright Act"); Business and Professions Code section 16600; and California's unfair competition law, Business and Professions Code sections 17200, et seq. Focusing on

4756-420: Is a type of lawsuit where one of the parties is a group of people who are represented collectively by a member or members of that group. The class action originated in the United States and is still predominantly an American phenomenon, but Canada, as well as several European countries with civil law , have made changes in recent years to allow consumer organizations to bring claims on behalf of consumers. In

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4872-441: Is attributable to the award of the coupons shall be based on the value to class members of the coupons that are redeemed". 28 U.S.C.A. 1712(a). A common critique is that class actions are a form of judicially sanctioned extortion . The extortion thesis was first articulated by law professor Milton Handler , who published a famous law review article in 1971 calling the class action a form of "legalized blackmail". It has garnered

4988-401: Is available against defendant classes at all. In a class action, the plaintiff seeks court approval to litigate on behalf of a group of similarly situated persons. Not every plaintiff looks for or could obtain such approval. As a procedural alternative, plaintiff's counsel may attempt to sign up every similarly situated person that counsel can find as a client. Plaintiff's counsel can then join

5104-499: Is found liable, and the declaratory judgment can be used then to pursue damages in the same procedure or in individual ones in different jurisdictions. If the latter is the case, the liability cannot be discussed, but only the damages. There under the Chilean procedural rules, one particular case works as an opt-out class action for damages. This is the case when defendants can identify and compensate consumers directly, i.e. because it

5220-479: Is one of the main methods used by companies in the high-technology sector to recruit employees with advanced and specialised skills, such as software and hardware engineers, programmers, animators, digital artists, Web developers and other technical professionals. Cold calling involves communicating directly in any manner with another firm's employee who has not otherwise applied for a job opening. Cold calling may be done in person, by phone, letter, or email. According to

5336-713: The Adobe Experience Cloud , a software suite which increased business. These included e-commerce services provider Magento Commerce from private equity firm Permira for $ 1.68 billion in June 2018, Marketo for $ 4.75 billion in 2018, Allegorithmic in 2019 for just under $ 160 million, and Workfront in December 2020 for $ 1.5 billion. 2021 additionally saw Adobe add payment services to its e-commerce platforms in an attempt to compete with Shopify , accepting both credit cards and PayPal . In July 2020, as

5452-533: The Apple Macintosh . Illustrator, which grew out of the firm's in-house font-development software, helped popularize PostScript-enabled laser printers. By the mid-1990s, Adobe would either develop or acquire Photoshop from John and Thomas Knoll , FrameMaker from Frame Technology Corporation, and After Effects and PageMaker from Aldus , as well as develop Adobe Premiere , later known as Premiere Pro, in-house, initially releasing it in 1991. Around

5568-703: The Austrian Ministry for Social Security, Generations and Consumer Protection , the Justice Ministry opened the discussion with a conference held in Vienna in June 2005. With the aid of a group of experts from many fields, the Justice Ministry began drafting the new law in September 2005. With the individual positions varying greatly, a political consensus could not be reached. Provincial laws in Canada allow class actions. All provinces permit plaintiff classes and some permit defendant classes. Quebec

5684-454: The Canadian government . The settlement amounted to upwards of $ 5 billion. Chile approved class actions in 2004. The Chilean model is technically an opt-out issue class action, followed by a compensatory stage which can be collective or individual. This means that the class action is designed to declare the defendant generally liable with erga omnes effects if and only if the defendant

5800-590: The Class Action Fairness Act of 2005 , passed by the United States Congress, found: Class-action lawsuits are an important and valuable part of the legal system when they permit the fair and efficient resolution of legitimate claims of numerous parties by allowing the claims to be aggregated into a single action against a defendant that has allegedly caused harm. There are several criticisms of class actions. The preamble to

5916-727: The Electronic Frontier Foundation with regard to its handling of government data requests in 2017. In 2022, Adobe was listed as one of the Best Places to Work for Disability Inclusion by the Disability Equality Index (DEI). Adobe has been criticized for its pricing practices, with retail prices being up to twice as much in non-US countries. After Adobe revealed the pricing for the Creative Suite 3 Master Collection, which

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6032-567: The Federal Rules of Civil Procedure . A major revision of the FRCP in 1966 radically transformed Rule 23, made the opt-out class action the standard option, and gave birth to the modern class action. Entire treatises have been written since to summarize the huge mass of law that sprang up from the 1966 revision of Rule 23. Just as medieval group litigation bound all members of the group regardless of whether they all actually appeared in court,

6148-467: The Flash update process, and for pushing a third-party scareware program designed to scare users into paying for unneeded system repairs. On October 3, 2013, the company initially revealed that 2.9 million customers' sensitive and personal data was stolen in a security breach which included encrypted credit card information. Adobe later admitted that 38 million active users have been affected and

6264-478: The Portable Document Format (PDF); and a host of tools primarily for audio-visual content creation, editing and publishing. Adobe offered a bundled solution of its products named Adobe Creative Suite , which evolved into a subscription software as a service (SaaS) offering named Adobe Creative Cloud . The company also expanded into digital marketing software and in 2021 was considered one of

6380-584: The United States District Court for the Northern District of California granted class certification for all employees of Defendant companies from January 1, 2005 through January 1, 2010. As of October 31, 2013, Intuit, Pixar and Lucasfilm had reached a tentative settlement agreement. Pixar and Lucasfilm agreed to pay $ 9 million in damages, and Intuit agreed to pay $ 11 million in damages. In May 2014, Judge Lucy Koh approved

6496-480: The entire text of Rule 23 and mentioned "class actions" 14 times in its index. Businesses targeted by class actions for inflicting massive aggregate harm have sought ways to avoid class actions altogether. In the 1990s, the US Supreme Court issued several decisions that strengthened the "federal policy favoring arbitration ". In response, lawyers have added provisions to consumer contracts of adhesion called "collective action waivers", which prohibit those signing

6612-399: The $ 20 million settlement between Lucasfilm, Pixar, and Intuit and their employees. Class members in this settlement, which involved fewer than 8% of the 65,000 employees affected, were to receive around $ 3,840 each. The trial of the class action for the remaining Defendant companies was scheduled to begin on May 27, 2014. The plaintiffs intended to ask the jury for $ 3 billion in compensation,

6728-460: The 100 Best Companies to Work For. In 2021, Adobe was ranked 16th. Glassdoor recognized Adobe as a Best Place to Work. In October 2021, Fast Company included Adobe on their Brands That Matter list. In October 2008, Adobe Systems Canada Inc. was named one of " Canada's Top 100 Employers " by Mediacorp Canada Inc. and was featured in Maclean's newsmagazine. Adobe received a five-star rating from

6844-539: The Archdiocese's churches were cited as a defendant class. This was done to include their assets (local churches) in any settlement. Where both the plaintiffs and the defendants have been organized into court-approved classes, the action is called a bilateral class action. In the United States, only a few hundred defendant class actions have been filed (mostly in securities cases and constitutional challenges), and circuit courts are split as to whether injunctive relief

6960-727: The Australian legal landscape only when the Federal Parliament amended the Federal Court of Australia Act in 1992 to introduce "representative proceedings", the equivalent of the American "class actions". Likewise, class actions appeared slowly in the New Zealand legal system. However, a group can bring litigation through the action of a representative under the High Court Rules which provide that one or

7076-619: The Class Action Fairness Act stated that some abusive class actions have harmed class members possessing legitimate claims and defendants acting responsibly; have adversely affected interstate commerce; and have undermined public respect for the country's judicial system. Class members often receive little or no benefit from class actions. Examples cited for this include large fees for the attorneys, while leaving class members with coupons or other awards of little or no value; unjustified awards are made to certain plaintiffs at

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7192-558: The Department of Justice alleged that Adobe, Apple, Google, Intel, Intuit, and Pixar had violated Section 1 of the Sherman Act by entering into a series of bilateral "No Cold Call" Agreements to prevent the recruitment of their employees (a similar but separate suit was filed against Lucasfilm on December 21, 2010). The DOJ alleged in their Complaint that the companies had reached "facially anticompetitive" agreements that "eliminated

7308-477: The Federal Chamber of Labour / Bundesarbeitskammer ) have brought claims on behalf of hundreds or even thousands of consumers. In these cases, the individual consumers assigned their claims to one entity, who has then brought an ordinary (two-party) lawsuit over the assigned claims. The monetary benefits were redistributed among the class. This technique, labeled as "class action Austrian style," allows for

7424-520: The PDF as a proprietary file format from its introduction until 2008, when the PDF became an ISO international standard under ISO number ISO 32000-1:2008 , though the PDF file format was free for viewers since its introduction. With its acquisition of Aldus, in addition to gaining PageMaker and After Effects, Adobe gained control over the TIFF file format for images. The 2000s saw various developments for

7540-413: The United States presidential elections approached, the software giant imposed a ban on the political ads features on its digital advertising sales platform. On November 9, 2020, Adobe announced it would spend US$ 1.5 billion to acquire Workfront , a provider of marketing collaboration software. The acquisition was completed in early December 2020. On August 19, 2021, Adobe announced it had entered into

7656-476: The United States thanks to the influence of Supreme Court Associate Justice Joseph Story , who imported it into US law through summary discussions in his two equity treatises as well as his opinion in West v. Randall (1820). However, Story did not necessarily endorse class actions, because he "could not conceive of a modern function or a coherent theory for representative litigation." The oldest predecessor to

7772-483: The adverse interests of the plaintiffs and the defendants in the suit properly before it. But in such cases, the decree shall be without prejudice to the rights and claims of all the absent parties. This allowed for representative suits in situations where there were too many individual parties (which now forms the first requirement for class-action litigation – numerosity). However, this rule did not allow such suits to bind similarly situated absent parties, which rendered

7888-453: The attackers obtained access to their IDs and encrypted passwords, as well as to many inactive Adobe accounts. The company did not make it clear if all the personal information was encrypted, such as email addresses and physical addresses, though data privacy laws in 44 states require this information to be encrypted. Class-action A class action , also known as a class action lawsuit , class suit , or representative action ,

8004-498: The case. Finally, a class action avoids the situation where different court rulings could create "incompatible standards" of conduct for the defendant to follow. See Fed. R. Civ. P. 23(b)(1)(A). For example, a court might certify a case for class treatment where a number of individual bond-holders sue to determine whether they may convert their bonds to common stock . Refusing to litigate the case in one trial could result in different outcomes and inconsistent standards of conduct for

8120-514: The claims of all of these persons in one complaint, a so-called "mass action", hoping to have the same efficiencies and economic leverage as if a class had been certified. Because mass actions operate outside the detailed procedures laid out for class actions, they can pose special difficulties for both plaintiffs, defendants, and the court. For example, settlement of class actions follows a predictable path of negotiation with class counsel and representatives, court scrutiny, and notice. There may not be

8236-399: The class but may be treated the same. Proposed settlements could offer some groups (such as former customers) much greater benefits than others. In one paper presented at an ABA conference on class actions in 2007, authors commented that "competing cases can also provide opportunities for collusive settlement discussions and reverse auctions by defendants anxious to resolve their new exposure at

8352-512: The class-action rule in the United States was in the Federal Equity Rules , specifically Equity Rule 48, promulgated in 1842. Where the parties on either side are very numerous, and cannot, without manifest inconvenience and oppressive delays in the suit, be all brought before it, the court in its discretion may dispense with making all of them parties, and may proceed in the suit, having sufficient parties before it to represent all

8468-893: The company and Nvidia announced their association to upgrade their AI and profound learning innovations. They planned to streamline Adobe Sensei AI and machine learning structure for Nvidia GPUs . Adobe and Nvidia had cooperated for 10 years on GPU quickening. This incorporates Sensei-powered features, e.g. auto lip-sync in Adobe Character Animator CC and face-aware editing in Photoshop CC, and also cloud-based AI/ML items and features, for example, picture investigation for Adobe Stock and Lightroom CC and auto-labeling in Adobe Experience Supervisor. Adobe further spent its time from 2018 to 2023 acquiring more companies to boost both Creative Cloud and

8584-428: The company introduced the first version of Adobe Creative Suite , bundling its creative software into a single package. The first version of Creative Suite introduced InDesign (the successor to PageMaker), Illustrator, Photoshop, ImageReady and InCopy, with the 2005 second edition of Creative Suite including an updated version of Adobe Acrobat, Premiere Pro, GoLive, the file manager Adobe Bridge , and Adobe Dreamweaver ,

8700-413: The company. Its first notable acquisition in the decade was in 2002, when Adobe acquired Canadian company Accelio, also known as JetForm . In May 2003, Adobe purchased audio editing and multitrack recording software Cool Edit Pro from Syntrillium Software for $ 16.5 million, as well as a large loop library called "Loopology". Adobe then renamed Cool Edit Pro to Adobe Audition . It was in 2003 that

8816-635: The contracts from bringing class-action suits. In 2011, the US Supreme Court ruled in a 5–4 decision in AT&;T Mobility v. Concepcion that the Federal Arbitration Act of 1925 preempts state laws that prohibit contracts from disallowing class-action lawsuits, which will make it more difficult for consumers to file class-action lawsuits. The dissent pointed to a saving clause in the federal act which allowed states to determine how

8932-417: The court's judgment on common issues unless they opt-out in a prescribed manner and time. Court rulings have determined that this permits a court in one province to include residents of other provinces in the class action on an "opt-out" basis. Judicial opinions have indicated that provincial legislative national opt-out powers should not be exercised to interfere with the ability of another province to certify

9048-496: The defendant corporation . Thus, courts will generally allow a class action in such a situation. See, e.g., Van Gemert v. Boeing Co. , 259 F. Supp. 125 (S.D.N.Y. 1966). Whether a class action is superior to individual litigation depends on the case and is determined by the judge's ruling on a motion for class certification. The Advisory Committee Note to Rule 23, for example, states that mass torts are ordinarily "not appropriate" for class treatment. Class treatment may not improve

9164-745: The development and sales of its older HTML /web development software, GoLive , in favor of Dreamweaver . Adobe offered a discount on Dreamweaver for GoLive users and supports those who still use GoLive with online tutorials and migration assistance. On June 1, Adobe launched Acrobat.com , a series of web applications geared for collaborative work. Creative Suite 4, which includes Design, Web, Production Premium, and Master Collection came out in October 2008 in six configurations at prices from about US$ 1,700 to $ 2,500 or by individual application. The Windows version of Photoshop includes 64-bit processing. On December 3, 2008, Adobe laid off 600 of its employees (8% of

9280-528: The efficiency of a mass tort because the claims frequently involve individualized issues of law and fact that will have to be re-tried on an individual basis. See Castano v. Am. Tobacco Co. , 84 F.3d 734 (5th Cir. 1996) (rejecting nationwide class action against tobacco companies). Mass torts also involve high individual damage awards; thus, the absence of class treatment will not impede the ability of individual claimants to seek justice. Other cases, however, may be more conducive to class treatment. The preamble to

9396-401: The expense of other class members; and confusing notices are published that prevent class members from being able to fully understand and effectively exercise their rights. For example, in the United States, class lawsuits sometimes bind all class members with a low settlement . These " coupon settlements " (which usually allow the plaintiffs to receive a small benefit such as a small check or

9512-408: The filing. Additional award payments of $ 80,000 were sought for each named plaintiff who served as a class representative. Payouts were to average a few thousand dollars based on the salary of the employee at the time of the complaint. In June 2014, Judge Lucy Koh expressed concern that the settlement would not be a good one for the plaintiffs. Michael Devine, one of the plaintiffs, said the settlement

9628-531: The first company in the history of Silicon Valley to become profitable in its first year. Warnock and Geschke considered various business options including a copy-service business and a turnkey system for office printing. Then they chose to focus on developing specialized printing software and created the Adobe PostScript page description language. PostScript was the first international standard for computer printing as it included algorithms describing

9744-525: The following (as of October 2022 ): Remove Portable Document Format (PDF), PDF's predecessor PostScript , ActionScript , Shockwave Flash ( SWF ), Flash Video (FLV), and Filmstrip (.flm) Adobe Color, Photoshop Express , Acrobat.com , Behance and Adobe Express. Adobe Media Encoder A microstock agency that presently provides over 57 million high-resolution, royalty-free images and videos available to license (via subscription or credit purchase methods). In 2015, Adobe acquired Fotolia ,

9860-586: The impetus for most types of group litigation removed, it went into a steep decline in English jurisprudence from which it never recovered. It was further weakened by the fact that equity pleading, in general, was falling into disfavor, which culminated in the Judicature Acts of 1874 and 1875. Group litigation was essentially dead in the United Kingdom after 1850. Class actions survived in

9976-698: The knowledge or consent of the employee)" and (2) "agreements that, when offering a position to another company's employee, neither company would counteroffer above the initial offer." On September 24, 2010, the United States Department of Justice Antitrust Division filed a complaint in the US District Court for the District of Columbia alleging violations of Section 1 of the Sherman Act . In US v. Adobe Systems Inc., et al. ,

10092-527: The last version of Creative Suite software that would be sold through perpetual licensing option, and in May announced that a Creative Cloud subscription would be the only way to get the newest versions of Photoshop, Illustrator, and other Adobe creative software. Reception to the mandatory subscriptions for future Adobe software was mostly negative, despite some positive testimonies on the move from customers and Adobe's attraction of 500,000 Creative Cloud subscribers by

10208-573: The latter of which attracted a joint civil lawsuit from the US Federal Trade Commission and the US Department of Justice in 2024. The company was started in John Warnock's garage. The name of the company, Adobe, comes from Adobe Creek in Los Altos , California, a stream which ran behind Warnock's house. That creek is named because of the type of clay found there (Adobe being a Spanish word for Mudbrick ). Adobe's corporate logo features

10324-585: The latter of which was acquired from a $ 3.4 billion acquisition of Macromedia , most notably . In addition to bringing in Dreamweaver, the $ 3.4 billion Macromedia acquisition, completed as a stock swap , added ColdFusion , Contribute , Captivate , Breeze (rebranded as Adobe Connect ), Director , Fireworks , Flash , FlashPaper , Flex , FreeHand , HomeSite , JRun, Presenter , and Authorware to Adobe's product line. By April 2008, Adobe released Adobe Media Player . On April 27, Adobe discontinued

10440-1194: The legal brief filed by a plaintiff in one of the class-action cases, cold calling is an effective method of recruiting for the high-technology sector because "employees of other [high-technology] companies are often unresponsive to other recruiting strategies... [and] current satisfied employees tend to be more qualified, harder working, and more stable than those who are actively looking for employment." The challenged "no cold call" agreements are alleged bilateral agreements between high technology companies not to cold call each other's employees. The DOJ alleges that senior executives at each company negotiated to have their employees added to 'no call' lists maintained by human resources personnel or in company hiring manuals. The alleged agreements were not limited by geography, job function, product group, or time period. The alleged bilateral agreements were between: (1) Apple and Google, (2) Apple and Adobe, (3) Apple and Pixar, (4) Google and Intel, (5) Google and Intuit, and (6) Lucasfilm and Pixar. The civil class action further alleges that agreements also existed to (1) "provide notification when making an offer to another [company]'s employee (without

10556-727: The letter-forms of many languages. Adobe added kanji printer products in 1988. Warnock and Geschke were also able to bolster the credibility of PostScript by connecting with a typesetting manufacturer. They weren't able to work with Compugraphic, but then worked with Linotype to license the Helvetica and Times Roman fonts (through the Linotron 100). By 1987, PostScript had become the industry-standard printer language with more than 400 third-party software programs and licensing agreements with 19 printer companies. Adobe's first products after PostScript were digital fonts which they released in

10672-509: The medieval English courts did not question the right of the actual plaintiffs to sue on behalf of a group or a few representatives to defend an entire group. From 1400 to 1700, group litigation gradually switched from being the norm in England to the exception. The development of the concept of the corporation led to the wealthy supporters of the corporate form becoming suspicious of all unincorporated legal entities, which in turn led to

10788-411: The modern class action binds all members of the class, except for those who choose to opt out (if the rules permit them to do so). The Advisory Committee that drafted the new Rule 23 in the mid-1960s was influenced by two major developments. First was the suggestion of Harry Kalven Jr. and Maurice Rosenfield in 1941 that class-action litigation by individual shareholders on behalf of all shareholders of

10904-738: The modern concept of the unincorporated or voluntary association . The tumultuous history of the Wars of the Roses and then the Star Chamber resulted in periods during which the common law courts were frequently paralyzed, and out of the confusion the Court of Chancery emerged with exclusive jurisdiction over group litigation. By 1850, Parliament had enacted several statutes on a case-by-case basis to deal with issues regularly faced by certain types of organizations, like joint-stock companies, and with

11020-594: The most economic cost". Advertising or otherwise soliciting to find lead plaintiffs may also be unethical, as the plaintiff may not genuinely be aggrieved. Although normally plaintiffs are the class, defendant class actions are also possible. For example, in 2005, the Roman Catholic Archdiocese of Portland in Oregon was sued as part of the Catholic priest sex-abuse scandal . All parishioners of

11136-540: The network of connections around former Apple CEO Steve Jobs , the Complaint alleged "an interconnected web of express agreements, each with the active involvement and participation of a company under the control of Steve Jobs ... and/or a company that shared at least one member of Apple's board of directors ". The alleged intent of this conspiracy was "to reduce employee compensation and mobility through eliminating competition for skilled labor". On October 24, 2013,

11252-818: The normal price-setting mechanisms that apply in the labor setting". The same day it filed the suit, the DOJ and the defendants proposed a settlement. A final judgment enforcing the settlement was entered by the court on March 17, 2011. Although the DOJ Complaint only challenged the alleged "no cold call" agreements, in the settlement the companies agreed to a broader prohibition against "attempting to enter into, entering into, maintaining or enforcing any agreement with any other person to in any way refrain from, requesting that any person in any way refrain from, or pressuring any person in any way to refrain from soliciting, cold calling, recruiting, or otherwise competing for employees of

11368-422: The notice, did not read it or did not understand it. The Class Action Fairness Act of 2005 addresses these concerns. An independent expert may scrutinize coupon settlements before judicial approval in order to ensure that the settlement will be of value to the class members (28 U.S.C.A. 1712(d)). Further, if the action provides for settlement in coupons, "the portion of any attorney's fee award to class counsel that

11484-445: The original perpetual and subscription pricing plans for CS5 would be unaffordable for not only individuals but also businesses, as well as refusing to extend a Creative Suite 6 discount to non-CS5 users. The original announcement of Adobe Creative Cloud was met with a positive reception from CNET journalists as a much more enticing plan, and Creative Cloud was first released in 2012, though a later CNET survey evidenced that more users had

11600-401: The other person", for a period of five years, a period which the court was allowed to extend. The settlement agreement did not provide any compensation for company employees affected by the alleged agreements. Lucasfilm entered into a similar settlement agreement in December 2010. In re: High-Tech Employee Antitrust Litigation ( U.S. District Court, Northern District of California 11-cv-2509)

11716-729: The parameters of one lawsuit, the U.S. Supreme Court, in Epic Systems Corp. v. Lewis (2018), enabled the use of class action waivers . Citing its deference to freedom to contract principles, the Epic Systems opinion opened the door dramatically to the use of these waivers as a condition of employment, consumer purchases and the like. Some commentators in opposition to the ruling see it as a "death knell" to many employment and consumer class actions, and have increasingly pushed for legislation to circumvent it in hopes of reviving otherwise-underrepresented parties' ability to litigate on

11832-488: The plaintiff is a single individual person or business that bought the dangerous product. Although standards differ between states and countries, class actions are most common where the allegations usually involve at least 40 people who the same defendant has injured in the same way. Instead of each individual person bringing their own lawsuits separately, the class action allows all the claims of all class members—whether they know they have been damaged or not—to be resolved in

11948-403: The products having top 10 security vulnerabilities. Observers noted that Adobe was spying on its customers by including spyware in the Creative Suite 3 software and quietly sending user data to a firm named Omniture . When users became aware, Adobe explained what the suspicious software did and admitted that they: "could and should do a better job taking security concerns into account". When

12064-456: The relatively paltry potential recoveries into something worth someone's (usually an attorney's) labor." Amchem Prods., Inc. , 521 U.S. at 617 (quoting Mace , 109 F.3d at 344). In other words, a class action ensures that a defendant who engages in widespread harm – but does so minimally against each individual plaintiff  – must compensate those individuals for their injuries. For example, thousands of shareholders of

12180-600: The rise of HTML5 . In July 2010, Adobe bought Day Software integrating their line of CQ Products: WCM, DAM, SOCO, and Mobile In January 2011, Adobe acquired DemDex, Inc. with the intent of adding DemDex's audience-optimization software to its online marketing suite. At Photoshop World 2011, Adobe unveiled a new mobile photo service. Carousel was a new application for iPhone, iPad, and Mac that used Photoshop Lightroom technology to allow users to adjust and fine-tune images on all platforms. Carousel also allowed users to automatically sync, share and browse photos. The service

12296-530: The rule ineffective. Within ten years, the Supreme Court interpreted Rule 48 in such a way so that it could apply to absent parties under certain circumstances, but only by ignoring the plain meaning of the rule. In the rules published in 1912, Equity Rule 48 was replaced with Equity Rule 38 as part of a major restructuring of the Equity Rules, and when federal courts merged their legal and equitable procedural systems in 1938, Equity Rule 38 became Rule 23 of

12412-614: The same time as the development of Illustrator, Adobe entered the NASDAQ Composite index in August 1986. In 1993, Adobe introduced the Portable Document Format , commonly shortened to the initialism PDF, and its Adobe Acrobat and Reader software. Warnock originally developed the PDF under a code name, "The Camelot Project", using PostScript technology to create a widely available digital document format, able to display text, raster graphics, vector graphics, and fonts. Adobe kept

12528-400: The service's first year. The switch to subscription only also did not deter software piracy of Creative Cloud services; within the first day of the first version of Photoshop exclusively made for Creative Cloud being released, cracked versions of Adobe Photoshop CC 2013 were found on The Pirate Bay , an online website used for distributing pirated software. In March 2018, at Adobe Summit,

12644-475: The support of a significant minority of the justices of the U.S. Supreme Court , along with prominent judges like Henry Friendly and Richard Posner . However, empirical studies have generally found the extortion thesis to be "overstated". Class action cases present significant ethical challenges. Defendants can hold reverse auctions and any of several parties can engage in collusive settlement discussions. Subclasses may have interests that diverge greatly from

12760-829: The top global leaders in Customer Experience Management (CXM). Adobe was founded in December 1982 by John Warnock and Charles Geschke , who established the company after leaving Xerox PARC to develop and sell the PostScript page description language . In 1985, Apple Computer licensed PostScript for use in its LaserWriter printers, which helped spark the desktop publishing revolution. Adobe later developed animation and multimedia through its acquisition of Macromedia , from which it acquired Macromedia Flash ; video editing and compositing software with Adobe Premiere , later known as Adobe Premiere Pro ; low-code web development with Adobe Muse ; and

12876-488: The worldwide staff) citing the weak economic environment . On September 15, 2009, Adobe Systems announced that it would acquire online marketing and web analytics company Omniture for $ 1.8 billion. The deal was completed on October 23, 2009. Former Omniture products were integrated into the Adobe Marketing Cloud . On November 10, 2009, the company laid off a further 680 employees. Adobe's 2010

12992-605: Was later renamed "Adobe Revel". Later that same year in October, Adobe acquired Nitobi Software, the maker of the mobile application development framework PhoneGap . As part of the acquisition, the source code of PhoneGap was submitted to the Apache Foundation , where it became Apache Cordova . In November 2011, Adobe announced that they would cease development of Flash for mobile devices following version 11.1. Instead, it would focus on HTML5 for mobile devices. In December 2011, Adobe announced that it had entered into

13108-430: Was marked by continuing arguments with Apple over the latter's non-support for Adobe Flash on its iPhone , iPad and other products. Former Apple CEO Steve Jobs claimed that Flash was not reliable or secure enough, while Adobe executives have argued that Apple wishes to maintain control over the iOS platform. In April 2010, Steve Jobs published a post titled Thoughts on Flash where he outlined his thoughts on Flash and

13224-679: Was the first province to enact class proceedings legislation, in 1978. Ontario was next, with the Class Proceedings Act, 1992. As of 2008, 9 of 10 provinces had enacted comprehensive class actions legislation. In Prince Edward Island , where no comprehensive legislation exists, following the decision of the Supreme Court of Canada in Western Canadian Shopping Centres Inc. v. Dutton , [2001] 2 S.C.R. 534, class actions may be advanced under

13340-451: Was unjust. In a letter he wrote to the judge he said the settlement represented only one-tenth of the $ 3 billion in compensation the 64,000 workers could have made if the defendants had not colluded. On August 8, 2014, Judge Koh rejected the settlement as insufficient on the basis of the evidence and exposure. Rejecting a settlement is unusual in such cases. This left the defendants with a choice between raising their settlement offer or facing

13456-878: Was £1,000 higher for European customers, a petition to protest over "unfair pricing" was published and signed by 10,000 users. In June 2009, Adobe further increased its prices in the UK by 10% in spite of weakening of the pound against the dollar, and UK users were not allowed to buy from the US store. Adobe's Reader and Flash programs were listed on "The 10 most hated programs of all time" article by TechRadar . Hackers have exploited vulnerabilities in Adobe programs, such as Adobe Reader, to gain unauthorized access to computers. Adobe's Flash Player has also been criticized for, among other things, suffering from performance, memory usage and security problems. A report by security researchers from Kaspersky Lab criticized Adobe for producing

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