PREVIOUSLY, 12:55 PM: Netflix snagged another new executive last week and got slammed by Fox today in a lawsuit alleging the streaming service has “illegally” been poaching employees.
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21st Century Fox accused Netflix of illegally hiring two of its executives in a lawsuit filed Friday, Deadline reports. “This action is necessary to enforce Fox’s rights, to hold Netflix liable for its wrongful conduct, and to prevent Netflix from continuing such illegal conduct”.
A Netflix spokesperson told CNBC the company intends to defend the lawsuit vigorously.
Fox says it learned in the fall of 2015 that Waltenberg meant to join Netflix. We do not believe Fox’s use of fixed term employment contracts in this manner are enforceable.
Hollywood has a love-hate relationship with Netflix, owner of the most popular paid online TV network in the world. Yet media companies happily sell shows to Netflix, which spends billions of dollars a year licensing programs and movies from companies like Fox.
The two executives in question, now-former VP of Promotions Marco Waltenberg and now-former VP of Creative Tara Flynn, were both under contract when they left for Netflix, according to the publication.
“Fox is seeking a permanent injunction prohibiting Netflix from interfering with executives under contract as well as compensatory and punitive damages”, the suit says.
“The lawsuit is also remarkable given California’s strict laws against non-compete clauses”.
“It appears that the plaintiff didn’t really know what happened”, McRae said in a telephone interview. Fox reminded that he had an agreement, but Netflix hired him anyway.
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Flynn had been vice president of creative affairs at Fox 21; Waltenberg was vice president, promotions, at Twentieth Century Fox Film. Fox sued him in Los Angeles in February, claiming he broke his contract.
