Lieff Cabraser has filed a class action labor antitrust “no-poach” lawsuit against Live Oak Bank and its two tech spin-offs, Apiture and nCino, on behalf of a former employee of two of the companies and at least seven hundred potential class members. As reported by the Triangle Business Journal, the lawsuit alleges that Live Oak’s tech spin-offs share an illegal no-hire agreement with the bank “to suppress competition for each other’s employees.”
“The express purpose of the No-Hire Agreement was to prevent the companies from having to pay competitive wages to attract and retain talent,” the complaint says.
As the Journal notes, the three North Carolina companies are the leading tech employers in the Wilmington area.
“The consequence of their geographic proximity on competition for employees is profound,” the lawsuit claims. “To work for any other potential employer in the same industry would require an employee to move to another city – at minimum, to the Research Triangle, approximately 130 miles away.”