Apple settles e-book price fixing class action suit, dodges possible $840M in claims
In a court filing on Monday, an attorney representing the plaintiffs in a class action suit seeking damages from Apple's e-book price fixing scheme informed federal Judge Denise Cote that the company has agreed to settle.
Apple's closing slide in its e-book antitrust case. | Source: U.S. District Court
The letter addressed to Judge Cote was handed in by plaintiffs' representative Steve Berman, a well-known class-action attorney who told Bloomberg that all parties involved agreed to the settlement. This includes Apple, general consumers and state attorneys general representing citizens in 33 U.S. states and territories.
Details of the arrangement have not been revealed as the memorandum containing the specifics of the deal is sealed pending each party's preparation and filing of the final settlement agreement for preliminary approval by the court. All parties must file their version of the agreement within 30 days.
Judge Cote later filed an order recognizing the letter, effectively halting a trial scheduled for July that was set to determine damages suffered from Apple's e-book price fixing scheme. The class was seeking as much as $280 million in claims associated to the Cupertino, Calif. company's actions, which could have been trebled to $840 million.
Apple is in the process of appealing a ruling by the U.S. District Court for the Southern District of New York -- the same court overseeing the class-action suit -- that found the company guilty of colluding with major book publishers to falsely inflate pricing of content sold through the iBookstore.
The U.S. government leveled the suit after an investigation into Apple's "agency model" price structure, which operates on a "most favored nations" basis that disallows content owners to sell their wares to another retailer for a lower price. Apple's model ran counter to Amazon's "wholesale model" that allows retailers to buy content from publishers in bulk, then set resale prices at or below cost as they see fit.
As it stands, the settlement payable to state attorneys general and consumers announced today is contingent on the outcome of Apple's appeal.
Prior to today's settlement agreement, Apple attempted to dismiss or stay the class-action suit, but both motions were shot down by Judge Cote.
Apple's closing slide in its e-book antitrust case. | Source: U.S. District Court
The letter addressed to Judge Cote was handed in by plaintiffs' representative Steve Berman, a well-known class-action attorney who told Bloomberg that all parties involved agreed to the settlement. This includes Apple, general consumers and state attorneys general representing citizens in 33 U.S. states and territories.
Details of the arrangement have not been revealed as the memorandum containing the specifics of the deal is sealed pending each party's preparation and filing of the final settlement agreement for preliminary approval by the court. All parties must file their version of the agreement within 30 days.
Judge Cote later filed an order recognizing the letter, effectively halting a trial scheduled for July that was set to determine damages suffered from Apple's e-book price fixing scheme. The class was seeking as much as $280 million in claims associated to the Cupertino, Calif. company's actions, which could have been trebled to $840 million.
Apple is in the process of appealing a ruling by the U.S. District Court for the Southern District of New York -- the same court overseeing the class-action suit -- that found the company guilty of colluding with major book publishers to falsely inflate pricing of content sold through the iBookstore.
The U.S. government leveled the suit after an investigation into Apple's "agency model" price structure, which operates on a "most favored nations" basis that disallows content owners to sell their wares to another retailer for a lower price. Apple's model ran counter to Amazon's "wholesale model" that allows retailers to buy content from publishers in bulk, then set resale prices at or below cost as they see fit.
As it stands, the settlement payable to state attorneys general and consumers announced today is contingent on the outcome of Apple's appeal.
Prior to today's settlement agreement, Apple attempted to dismiss or stay the class-action suit, but both motions were shot down by Judge Cote.
Comments
I highly recommend everybody boycott all Department of Justice products immediately.
Avoid justice at all costs.
Avoid justice at all costs.
At times like this, I'm reminded of the statue of Justice at Dublin Castle.
You know, (well, not you. Ireland will know.) the one with her back to the city, sword raised, and with no blindfold.
You mean like as in a firing squad?
????
And then Apple won their appeal against the DOJ and didn't have to pay up to anyone.
That would be sweet, but the DOJ and the courts have shown they will find Apple guilty no matter the evidence.
Apple was branded guilty before the trial began. It was just a farce. It is sad that Apple had to settle. Cote did Amazon proud. Hatchette is the first one that is being forced to bend over now. Things are going to get a lot worse.
This settlement with the States won't be affected by any future Appeal results including even a total reversal, This is a settlement Apple agreed to and not one imposed on them by a court decree.
Not if Dr. Dre has anything to say about it.
Read the last part of the article. It explicitly says it is contengent on the outcome of Apple's appeal. Pretty sure Apple would ask for that.
Rescuing greedy publishers from Amazon- not that's a pathetic excuse.
Thanks for that! Just finished a read of the proposed settlement doc itself and you are 100% correct. :smokey:
Publishers should be able to set minimum prices for their own goods.
Who allowed Amazon to set market prices when they had a near monopoly?
Pathetic and greedy reply.
So use torrents to get free ebooks and steal library books, that way 'greedy publishers' get nothing.
Considering that the damages trial was going to be under Judge Denise Cote, yeah, Apple saw the writing on the wall on this one.