STSW is Co-Counsel in Class Action Suit Against World's Largest Rail Equipment Suppliers

On April 23, 2018, Silverman, Thompson, Slutkin & White, LLC, Kramon & Graham, P.C. and co-counsel Girard Gibbs LLP, filed a class action lawsuit on behalf of employees against the world’s largest rail equipment suppliers – Knorr-Bremse AG, Knorr Brake Company, New York Air Brake LLC (together “Knorr”), Westinghouse Air Brake Technologies Corporation (“Wabtec”), and Faively Transport North America (“Faiveley”) – in the United States District Court for the District of Maryland. The lawsuit alleges that the companies conspired, through ‘no-poach’ agreements, not to compete for, solicit, or recruit the services of each other’s employees, thereby severely limiting the employees’ leverage, mobility, advancement, and compensation. Consequently, the law suit seeks damages to compensate employees for the amounts that they were denied due to these agreements.

The Department of Justice (“DOJ”) uncovered the unlawful no-poach agreements as part of its review of the Wabtec-Faiveley merger. The investigation revealed that the Defendants had for years agreed not to “solicit, recruit, hire without prior approval, or otherwise compete for employees.” According to the DOJ’s Competitive Impact Statement, the agreements “suppressed and eliminated competition to the detriment of employees by depriving workers of competitively important information that they could have leveraged to bargain for better job opportunities and terms of employment.”  The investigation was made public on April 3, 2018, when the DOJ filed both a complaint again Knorr and Wabtec and a settlement of its claims.  The settlement, however, did not provide compensation to the injured employees.

“This case seeks justice for employees who were systematically cheated out of fair compensation by the Defendants’ blatantly illegal conspiracy to limit employee mobility and keep wages well below what a free market would have produced,” said STSW partner Stephen Grygiel.

Current or former employees of Knorr-Bremse AG, Knorr Brake Company LLC, New York Air Brake LLC, Westinghouse Air Brake Technologies Corporation (Wabtec), or Faively Transport North America Inc, may have a claim.

Current and former employees interested in learning more about this litigation are encouraged to contact William Sinclair (410) 385-2225 or (800) 385-2243.