Viacom, like Fox before, asserts the streamer is knowingly interfering with contracts.
Viacom has filed a lawsuit alleging that Netflix induced one of its employees to break contract to join the streaming giant. The case, lodged in Los Angeles Superior Court last week, continues to explode the issue of the legality of fixed-term employment contracts.
Netflix is already being sued by 20th Century Fox Film Corporation — set to be acquired by Disney — over the poaching of two executives. In June, a California appeals court gave the green light for Netflix to assert counterclaims challenging Fox's alleged bullying of employees into "take-it-or-leave-it" deals. Netflix contends these types of fixed contracts restrain employee mobility and create unlawful barriers to entry in violation of California Business and Professions Code Section 16600. A trial in the case is scheduled for next summer.
Now comes a new lawsuit alleging tortious interference and unfair competition from Viacom, upset over the flight of TV production executive Momita Sengupta, who according to the complaint, had a contract offering exclusive services with a term that began in April 2017 and wasn't set to expire until April 2020.