Apple E-Book Price Fixing Class Action Settlement Details Emerge

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Apple Inc. has agreed to terms that would result in a $450 million Apple e-book price fixing class action lawsuit settlement from lawsuits filed by attorney generals in 33 states across the country, but there some strings attached.

Apple lost the e-book class action lawsuit held in federal court that it conspired with various publishing companies in order to set an arbitrarily high price for e-books consumers bought using through its iTunes store.

Therefore, the settlement was negotiated prior to the damages trial, where the company could have been hit for up to $700 million because of the possibility of treble damages.

However, according to the e-book settlement agreement, the final results will depend on the Second Circuit Court of Appeals. It is expected to hear Apple’s appeal regarding its alleged e-book price fixing.

The scenarios based on the court’s decision are as follows:

1) If the Second Circuit Court affirms the ruling, Apple will pay $400 million to a consumers account and $20 million to the states involved in the e-book class action lawsuit.

2) If the Second Circuit Court vacates the decision or remands the case back to federal court, the amount drops from $400 million to $50 million for consumers and from $20 million to $10 million for states.

3) If the finding is reversed, then Apple avoids any potential implications. Regardless of the result, it would end years of litigation regarding the purported price-fixing scheme that began around the time that the iPad tablet was set to launch.

All of the publishers agreed to settle claims regarding their role in the collusion with only Apple choosing to fight and fight hard from pre-trial motions regarding expert witnesses and damage models to other concerns.

With a victory in the appeals court, the total amount paid out by Apple would be roughly $600 million in total to consumers, states and class action lawsuit lawyers. More information about how to file a claim for the Apple e-book class action settlement was not immediately available.

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The plaintiffs are represented by class action lawsuit lawyers from Hagens Berman Sobol Shapiro LLP and Cohen Milstein Sellers & Toll PLLC.

The Apple E-Book Price Fixing Class Action Lawsuits are consolidated as In re: Electronic Books Antitrust Litigation, MDL No. 2293, in U.S. District Court for the Southern District of New York.

UPDATE 1: 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 2: 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 3: A settlement website has been established for the Apple e-books class action settlement. Click here for more information.