Hagens Berman: Penguin Agrees to $75 million E-book Settlement with States, Consumers
22 Mai 2013 - 3:52PM
Business Wire
Hagens Berman Sobol Shapiro, a consumer-rights law firm, today
announced that the firm, working alongside 33 state attorneys
general, has reached a proposed $75 million settlement with global
book publisher Penguin (NYSE: PSO) over allegations that it
participated in an illegal scheme to fix the price of e-books in
the United States.
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.
“This proposed settlement is a powerful demonstration of what is
possible when federal, state and private class antitrust
enforcement lawyers work together,” said Steve W. Berman, managing
partner of Hagens Berman. “In this case, the level of cooperation
was unprecedented, and the results that we were able to deliver to
the states and consumers demonstrate that.”
Late last year, Penguin settled similar claims with the
Department of Justice. Under that settlement, Penguin agreed to end
its allegedly anticompetitive agreements with Apple and other
retailers for a period of two years.
In December, Berman was appointed lead counsel to represent the
rights of consumers in the consolidated class-action lawsuit first
filed on Aug. 9, 2011. It alleges that the defendants coordinated a
switch to an agency model, where publishers would set the price,
rather than retailers. The result, the lawsuit claims, was a
dramatic increase in the price of many e-books as retailers were
contractually forbidden from competing on price. The suit sought to
compensate consumers for overpayment as a result of the pricing
agreement.
“Penguin's senior management deserves credit for working with us
and the attorneys general to reach a comprehensive agreement in
such a hotly contested case,” said Jeff D. Friedman, Hagens Berman
partner. “They’ve agreed to a settlement that will go a long way
toward making e-book consumers whole and restoring a thriving,
again-competitive e-book marketplace.”
The states and the Department of Justice are scheduled to face
Apple in a civil trial regarding these claims beginning on June 3,
2013.
The settlement with Penguin must be approved by the court. A
hearing is expected later this summer. For more information or to
track the progress of the settlement, visit
www.hbsslaw.com/ebooks.
About Hagens Berman
Seattle-based Hagens Berman Sobol Shapiro LLP represents
consumers, whistleblowers, investors, workers and others in complex
and class-action litigation. The firm has offices in ten cities and
has been named to the National Law Journal’s Plaintiffs’ Hot List
five times. Founded in 1993, HBSS continues to successfully fight
for consumer rights in large, complex litigation against large
corporations. More about the law firm and its successes can be
found at www.hbsslaw.com. Visit the firm’s class-action law blog at
www.classactionlawtoday.com.
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