East and WGA West have dropped their lawsuit against the Big 4 talent agencies, and have answered and filed counter-claims in the federal antitrust case that CAA, WME and UTA brought against the guild.
“Over the years the major agencies have repeatedly broken federal antitrust law by conspiring to fix the price of packaging fees,” WGA West president David A. Goodman said Monday. “Their current campaign to preserve the packaging fee model by strong-arming smaller agencies also violates the law.
“There is a new development in our campaign to end conflicted agency practices,” guild leaders told their members today. “In June, WME, CAA and UTA filed frivolous antitrust lawsuits against the WGAW and WGAE in federal court. Today, the Guilds responded to those actions by filing our own antitrust and racketeering claims in federal district court against WME, CAA and UTA.
• Packaging fees are unlawful kickbacks from an employer to a representative of its employees in violation of Section 302 of the federal Labor-Management Relations Act. The agencies’ repeated violations of Section 302 constitute both an unfair business practice under California law and a “pattern of racketeering activity” under the federal Racketeer Influenced and Corrupt Organizations Act .
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