May 22nd, 2013, 4:25 pm

Penguin will pay $75 million in damages and “costs and fees to resolve all antitrust claims relating to eBook pricing”–settling with 33 state attorneys general and consumers in a suit led by Hagens Berman Sobol Shapiro.


The suit revolved around allegations of price fixing with the agency model for eBook pricing. The publisher issued a brief statement:



Penguin has also committed to the State Attorneys General to abide by the same injunctive relief as previously agreed in a separate settlement with the Department of Justice. In anticipation of reaching this agreement, Pearson had made a $40m provision for settlement in its 2012 accounts. An incremental charge will be expensed in Pearson’s 2013 statutory accounts as part of the accounting for the Penguin Random House joint-venture.



In December, Penguin reached a settlement with the Department of Justice in a similar suit about eBook pricing. In addition, Hagens Berman Sobol Shapiro described the ramifications of the settlement in a release:



The lawsuit asserts that Penguin actively participated in a price-fixing scheme orchestrated by Apple (NASDAQ: AAPL) that artificially raised e-book prices and created a virtual cartel, eliminating any retailer competition on price. The $75 million settlement, if approved by the court, would resolve claims filed by 33 states against Penguin as well as class-action lawsuits filed by consumers alleging that the company’s behavior violated unfair competition laws, causing consumers to overpay for e-books.


May 22nd, 2013, 4:25 pm