May 9, 2025
A split Fourth Circuit panel Friday revived a putative class action accusing major shipbuilders and naval engineering consultants of an illegal “no-poach” conspiracy, with the majority holding that just because the alleged conspirators never formalized their purported agreements in writing, it doesn’t mean the conspiracy can’t be unlawful.
The 2-1 panel decision reversed a lower court ruling from last year finding that the plaintiffs’ fraudulent concealment argument for tolling the four-year Sherman Act statute of limitations didn’t pass muster. On the contrary, the circuit majority held that the two naval engineers who brought the case had adequately pled that they were kept in the dark about the alleged conspiracy within the statutory period because the employers were deliberately trying to conceal it.
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The plaintiffs are represented by Brent W. Johnson, Steven J. Toll, Robert W. Cobbs, Alison S. Deich, Zachary R. Glubiak, and Sabrina S. Merold of Cohen Milstein Sellers & Toll PLLC, Shana E. Scarlett, Rio S. Pierce, Steve W. Berman, Kevin K. Green and Elaine T. Byszewski of Hagens Berman Sobol Shapiro LLP, George F. Farah, Nicholas Jackson and Simon Wiener of Handley Farah & Anderson PLLC, Candice J. Enders and Julia R. McGrath of Berger Montague, and Brian D. Clark, Stephen J. Teti and Arielle S. Wagner of Lockridge Grindal Nauen PLLP.
Read Split 4th Circ. Revives Naval Engineers’ No-Poach Case.