eBay must face Justice Department suit over recruiting: ruling

(Reuters) - A U.S. judge on Friday refused eBay's attempt to dismiss a U.S. Department of Justice civil lawsuit over its alleged agreement with Intuit to refrain from recruiting each other's employees.

In a tandem order, U.S. District Judge Edward Davila in San Jose, California, granted eBay's motion to dismiss a parallel lawsuit brought by the state of California.

Representatives for eBay and the California attorney general's office could not immediately be reached for comment.

The suit, and similar legal issues involving other technology companies, highlight the intense competition for talent in Silicon Valley.

A "handshake" agreement between eBay and Intuit came into place in 2006 and involved executives including then-eBay chief executive Meg Whitman and Intuit founder Scott Cook, according to court documents. At the time, Cook was serving on eBay's board and complained about eBay poaching Intuit employees.

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