Bryan Cohen May 5, 2014, 2:33pm

SAN FRANCISCO (Legal Newsline) - California Attorney General Kamala Harris announced a nearly $4 million settlement on Thursday with eBay to resolve allegations the company made an anticompetitive no-poach agreement with Intuit.

Harris filed suit against eBay in November 2012 and named Intuit as a co-conspirator. The lawsuit alleged that between 2006 and 2009, senior executives at both companies agreed to restrict each company's ability to recruit employees from the other company. Harris alleged the agreement prevented employees of both companies from potentially better-paying positions and kept the companies from hiring qualified employees.

"California's technology sector is at its best when competition and creativity are allowed to thrive," Harris said. "No-poach agreements unfairly punish talented workers and stunt our state's economic growth. This settlement compensates employees, demands improved future hiring practices, and refunds the state for economic harm."

Harris alleged eBay and Intuit violated the state Cartwright Act, California's Unfair Competition Law and the federal Sherman Anti-Trust Act.

Under the terms of the settlement, eBay must pay restitution and civil penalties totaling $3.75 million and make commitments regarding the company's future hiring practices. Part of the settlement fund will be used to pay restitution to individuals employed in California by eBay or Intuit since 2005.

Harris reached a settlement with Intuit on this matter in July.

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