WGA ‘continues to enforce’ discovery, then faces trial in legal battle with big three agencies, despite court failure

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“We look forward to further discovery and subsequent trial,” the WGA told its members today of the year-long legal battle with the Big Three talent agencies. That’s despite a stinging, but not complete, defeat in court Monday, when a federal judge dismissed much of the guild’s antitrust lawsuit against WME, CAA and UTA. The agencies hailed the ruling as a “decisive victory.”

“Yesterday, a federal judge issued a decision on the claims contained in the lawsuit filed by the WGA against WME, CAA and UTA,” the guild’s negotiating committee told WGA members today. “He upheld some of our claims and dismissed others. The most disappointing of those released was the racketeering charge. However, the core claims of our lawsuit – namely, that the packaging constitutes a breach of fiduciary duty and that the agencies committed antitrust violations by pricing the packaging – remain.

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“While the agencies are predictably declaring victory in the hope of undermining member solidarity, they are not privately celebrating. This is not the “victory” they anticipated or needed, which was a complete dismissal of the lawsuit. Instead, six powerful claims that in their scope undermine the entire packaging system will now continue to be considered. Discovery – which agencies have reason to fear and which has already begun – will now continue. Agencies will be required to publicly defend practices they have tried to keep private for decades. For this purpose, six claims are enough.

“Through it all, our goal has always been the same: to align the agency’s economic interests with ours. This lawsuit puts a strong push in that direction. It works with our greatest asset: Your solidarity in continuing to deprive other non-franchising agencies of their writer clients.

“Due to yesterday’s judge’s decision, there will be no salvation for the agency. We look forward to further discovery and subsequent trial.”

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