Apple Inc. (AAPL) has received preliminary approval, to pay $450 million settlement in an antitrust law suit against the company for colluding with publishers to raise e-book prices. The ruling came in on Friday and Apple still has a chance to appeal the case.
THE class-action lawsuit was brought against Apple by consumers and 33 states in February, to which Apple agreed to settle for $450 million in June. The suit was filed after US District Judge Denise Cote in 2013 imposed various injunctions on the company including the inability to influence e-book pricing with publishers and appointed compliance officer to oversee the company.
Yesterday, Cote granted the company approval to settle the case for $450 million. Apple, though, can appeal the ruling, and if it wins, Apple would avoid all charges but would still have to pay $70 million if the case is brought back to Judge Cote’s courtroom. That scenario was described by Judge Cote as “most troubling.” But if the appeals court upholds Judge Cote’s decision, Apple will have to pay $400 million to consumers and $50 million to lawyer’s.
Judge Cote said: “The proposed settlement agreement is within the range of those that may be approved as fair and reasonable, such that notice to the class is appropriate. Preliminary approval is granted.”
Apple has throughout maintained its stance against allegations of not colluding nor fixing e-book pricing. The company said its efforts have only been beneficial for publishers and authors.
The matter first made headlines back in 2010, when the Department of Justice (DoJ) blamed Apple and five publishers, which include Hachette Book Group Inc., HarperCollins Publisher LLC, CBS Corp’s (CBS) Simon & Schuster Inc., Penguin Group Inc. and Macmillan. These publishers had earlier agreed to collectively make a $166 million payment to consumers to settle the case
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