Hagens Berman: Apple E-books Proposed Settlement Could Return $400 Million to Consumers
July 16 2014 - 12:05PM
Business Wire
Total recovery including earlier settlements
could top $560 million
Today Hagens Berman attorneys representing a class of e-book
purchasers announced they have reached a settlement with Apple
(NASDAQ: AAPL) for its role in an alleged price-fixing scheme which
has the potential of returning $400 million to consumers. Hagens
Berman litigated the case jointly with the attorneys general from
33 U.S. states and territories.
The class of consumers alleged that Apple illegally colluded
with a group of five publishing companies to manipulate the e-book
market by artificially raising the price of e-books, lowering
competition and charging consumers higher prices.
Prior to this proposed settlement, Hagens Berman and the state
attorneys general secured $166 million in settlements on behalf of
consumers from the five publishing companies that allegedly
conspired with Apple, bringing the total potential recovery to
consumers to $560 million, twice the amount of damages suffered by
the class.
Under the terms of today’s settlement, Apple will pay consumers
$400 million if Apple’s appeal of a 2013 bench ruling which found
Apple guilty of federal antitrust laws is dismissed. In July 2013,
after a trial involving the Department of Justice and numerous
state attorneys general, Judge Cote of the District Court for the
Southern District of New York found Apple guilty of violating both
federal and state antitrust laws. Apple has appealed this ruling to
the 2nd Circuit.
“We have obviously studied Judge Cote’s July 2013 ruling in
detail, and believe that the 2nd Circuit will agree with her
conclusion that Apple did violate federal antitrust laws,” said
Steve W. Berman, managing partner of Hagens Berman and lead
attorney representing the consumer class. “In any case of this
magnitude, there are high degrees of uncertainty, and Apple’s
appeal of Judge Cote’s well-reasoned ruling is an example of that
uncertainty.”
If the Court of Appeals reverses and remands the case back to
District Court, the settlement agreement calls for Apple to pay
consumers $50 million to settle their damages claims, while the
Department of Justice and states’ attorneys general would remain
free to continue litigating their claims for injunctive relief. If
the court of appeals reverses the lower court decision, Apple would
pay no damages.
Hagens Berman represents purchasers of e-books in 19 states and
four U.S. territories, with the balance of the states represented
by their respective attorneys general.
“When we pioneered the theory that Apple and its publishing
co-conspirators worked together to wring money from consumers
through this complex scheme, we knew we would be in for a difficult
fight,” Berman said. “Apple and the publishing companies went to
extraordinary lengths to fight the claims of consumers and the
states, but in the end, we believe this settlement is confirmation
that the antitrust laws apply equally to all citizens.”
More information about the firm’s case against Apple is
available at
http://www.hbsslaw.com/cases-and-investigations/cases/ebooks.
About Hagens Berman
Hagens Berman Sobol Shapiro LLP is a consumer-rights,
class-action law firm with offices in nine cities. The firm has
been named to the National Law Journal’s Plaintiffs’ Hot List seven
times. More about the law firm and its successes can be found at
www.hbsslaw.com. The firm’s class-action law blog is located at
www.classactionlawtoday.com.
Firmani + AssociatesMark Firmani,
206-443-9357Mark@firmani.com
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