A federal judge has denied the WGA’s motion to dismiss antitrust lawsuits filed by Hollywood agencies CAA, WME and UTA against the guild
) by U.S. District Court Judge Andre Birotte Jr. formally denied the defendants’ motion to dismiss, or in the alternative, motion for judgment on the pleadings. It followed from Birotte’s tentative ruling December 6 after hearing arguments from both sides in the high-profile guild-vs.-agencies battle.
It is a significant victory for the Big Three agencies in the long public and court battle over the past several months. The ruling is not appealable, meaning the case can move forward to trial after the discovery process.
The guild alleges that the three agencies’ packaging fee model violates federal antitrust laws and the Racketeer Influenced and Corrupt Organizations Act. The WGA also claims that packaging fees violate the agencies’ fiduciary duty to their clients and constitutes “a system of illegal kickbacks and price-fixing under federal law.”
“A dismissal would have been welcomed, but we appreciate the court’s desire to have a more complete factual record,” the WGA said in a statement today. “We continue to move forward with our case and are confident that the evidence uncovered through discovery will prove the agencies’ conflicts of interest and breach of fiduciary duty that we have detailed in our complaint.”
Just before the end of the year, the two sides proposed a trial start date of March 2021, with a a trial lasting around 20 days. Next up on the docket is a hearing January 17 on the agencies’ motion to dismiss the WGA’s counter-claims.November 21, 2019
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