Writers Guild Moves Agency Lawsuit to Federal Court, Adds Racketeering and Antitrust Claims

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Writers Guild Moves Agency Lawsuit to Federal Court, Adds Racketeering and Antitrust Claims
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The union has expanded its litigation by adding price fixing and other allegations.

The Writers Guild of America on Monday dismissed its state court lawsuit against the Big Four talent agencies and refiled similar allegations and more in federal court against the top three firms, expanding an already bitter fight. The new filings include antitrust claims and explosive allegations of racketeering against the agencies under a law known as RICO that is more commonly deployed against organized crime.

The suit charges that the packaging fee model violates the agencies’ fiduciary duty to their clients and constitutes a system of illegal kickbacks and price-fixing under federal law. The suit also alleges that the agencies’ “collusive agreement not to negotiate individually with the Guilds” and “collusive agreement to blacklist writers or other individuals or entities who object to packaging fees or agree to the Guild’s Code of Conduct” violate federal antitrust laws.

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