Major U.S. shipbuilders, including General Dynamics and Huntington Ingalls, have petitioned the U.S. Supreme Court to review a May 2025 ruling by the 4th U.S. Circuit Court of Appeals in Richmond, Virginia.
The decision revived a class-action lawsuit accusing the companies of conspiring to suppress wages for architects and engineers. A lower court had dismissed the case, citing the four-year statute of limitations for antitrust claims.
Lawsuit Allegations
Filed in 2023, the lawsuit claims that since 2000, these shipbuilders and several engineering consultancies violated federal antitrust laws by agreeing not to recruit each other’s key employees.
This alleged “no-poach” pact reportedly cost workers hundreds of millions in lost wages. The plaintiffs’ attorneys estimate tens of thousands of engineers and architects could join the proposed class.
Company and Plaintiff Responses
The shipbuilders deny any wrongdoing. One recruiter named in the lawsuit has agreed to cooperate with the plaintiffs.
Huntington Ingalls offered no immediate comment, and General Dynamics did not respond to inquiries. The plaintiffs’ legal team also declined to comment.
Legal Strategy and Arguments
The companies, represented by veteran appellate lawyer Donald Verrilli Jr., a former U.S. Solicitor General, argue the claims are outdated.
They warn that the 4th Circuit’s ruling could allow plaintiffs to revive old antitrust allegations by citing unwritten agreements, expanding the timeframe for such lawsuits unfairly.
The petition calls the claims “long expired” and argues they should not hinge on alleged verbal deals.
Appeals Court Ruling
In May 2025, 4th Circuit Judges James Wynn and DeAndrea Gist Benjamin ruled that the plaintiffs sufficiently alleged a concealed no-poach agreement, which delayed their awareness of the conspiracy. This justified reinstating the case.
Case Details
- Case Name: General Dynamics Corp et al v. Susan Scharpf
- Court: U.S. Supreme Court, No. 25-293
- Petitioner’s Counsel: Donald Verrilli Jr., Munger, Tolles & Olson
- Respondent’s Counsel: Not yet listed
Potential Impact
The Supreme Court’s decision could reshape how antitrust lawsuits are timed and proven, especially for claims involving unwritten agreements.
A ruling for the plaintiffs might encourage similar class actions, while a win for the shipbuilders could tighten filing deadlines.
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