Oral arguments were heard Friday, January 24, in federal court on the Big 3 talent agencies’ motion to dismiss the Writer’s Guild of America’s (WGA) antitrust suit against them. If US District Court Judge Andre Birotte Jr. denies the motion, the case would be headed for trial in March 2021 after a lengthy and costly discovery process, in which the sides would have to open their books to each other.
Last month, without ruling on the merits of the case, the judge issued a tentative ruling that denied the WGA’s motion to dismiss the lawsuits brought against the guild by WME, CAA and UTA. He made that tentative ruling before hearing oral arguments, and then made the ruling final on January 7. Today, however, he made no tentative ruling – either before or after the hearing.
The guild argued that packaging fees “are kickbacks and bribes” that the agencies have been extracting from the studios to package their shows, but the judge said, “I am concerned about this interpretation,” and asked how it could be that it’s only being challenged now if “everyone knew about it since 1990?”, reported Deadline.
After the hearing, the guild said, “Once again, the court has given the issues of this case careful consideration. Our legal team delivered a forceful rebuttal to the agencies’ motion to dismiss our counterclaims. We look forward to seeing the court’s ruling.”
The agencies’ suits include claims that the WGA, in its nine-month campaign to end film and TV packaging fees, has restrained competition “on a staggering scale” through illegal means, including agreements with non-labor parties – such as non-writing showrunners, and lawyers and personal managers the guild deputized to perform agenting duties – in service of a group boycott and “overly restrictive restraints in commercial markets that the union has no authority to regulate.”
Full Content: Deadline
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