E-Book Price-Fixing Class Action Settlement Gets Final OK

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On Friday, U.S. District Judge Denise Cote granted final approval to $95 million in settlements that will resolve allegations that a group of publishing companies conspired with Apple Inc. to fix and raise e-book prices. Under the terms of the class action settlement agreements, consumers will receive either a check or a credit to their e-book accounts.

The e-book price fixing litigation involved 33 state attorneys general and a class action lawsuit filed by consumers who say they purchased e-books at inflated prices because of the alleged price-fixing. The U.S. Department of Justice also investigated the alleged conspiracy. Judge Cote found Apple guilty of price-fixing, and a trial to determine damages has been set for May 2014. Apple has denied any wrongdoing and has appealed Judge Cote’s verdict.

Judge Cote denied a motion to intervene from Bob Kohn, the founder of eMusic, finding that he lacked standing. In his objection to the class action lawsuit, Kohn argued that the court made a “fundamental error of law when it ruled that an examination into Amazon’s e-book pricing practices prior to April 2010 was not relevant” to the litigation.

The consumer class includes U.S. residents who purchased an e-book from one of the involved publishers between April 1, 2010 and May 21, 2012. The publishers involved in this class action settlement include Hachette Book Group Inc., HarperCollins Publishers LLC, Simon & Schuster Inc., Penguin Group USA Inc. and Macmillan Publishers Ltd.

Consumers who purchased e-books through Amazon, Barnes & Noble, Apple, Kobo or Sony and received an email or postcard notice about the class action settlement do not need to take any action to participate in the class action settlement. If you purchased an e-book through Google or other retailers, the deadline to file a Claim Form has passed.

Class Members are expected to receive as much as $3.06 for each New York Times bestseller purchased during the class action settlement period and 73 cents for each non-bestseller, although the exact amounts have not yet been determined. More than 23 million consumers could be eligible for refunds.

In August, Judge Cote preliminarily approved a settlement involving allegations that Penguin Group USA Inc. and Macmillan Publishers USA conspired with Apple Inc. to fix the prices of e-books. Under the terms of the class action settlement, Penguin will pay $75 million and Macmillan will pay $20 million.

More information about the E-Book Price-Fixing Class Action Settlement can be found at www.eBooksAGSettlements.com. It is not yet known when the partial refunds will be distributed to consumers. Keep checking Top Class Actions or sign up for our newsletter below for updates.

The consumer class is represented by Hagens Berman Sobol Shapiro LLP and Cohen Milstein Sellers & Toll PLLC.

The Consumer E-Book Price-Fixing Class Action Lawsuit is In re: Electronic Books Antitrust Litigation, Case No. 1:11-md-02293, in the U.S. District Court for the Southern District of New York

UPDATE 1: Apple Inc. announced June 16, 2014, that it had reached an undisclosed class action lawsuit settlement in the e-book antitrust litigation.

UPDATE 2: The judge presiding over the Apple e-book litigation expressed reservations about approving the proposed class action settlement, leading lawyers from both sides to go back to the drawing board to try and modify the deal.

UPDATE 3: A federal judge preliminarily approved a $450 million Apple e-book class action settlement on Aug. 1, 2014. A Final Fairness Hearing is scheduled for Nov. 21, 2014. 

UPDATE 4: A settlement website has been established for the Apple e-books class action settlement. 

UPDATE 5: On Nov. 21, 2014, U.S. District Judge Denise Cote granted final approval to the Apple e-book class action settlement.