Hagens Berman: Court Affirms Potential $450 Million Settlement with Apple in E-books Price-Fixing Class Action
June 30 2015 - 12:41PM
Business Wire
Second Circuit upholds District Court decision,
Apple loses appeal
Hagens Berman attorneys representing a class of e-book
purchasers announced today that the Second Circuit has affirmed a
District Court ruling, bringing consumers one step closer to a
proposed $450 million settlement with Apple (NASDAQ: AAPL) for its
role in an alleged e-book price-fixing scheme with five of the
nation’s largest publishing companies.
With the court’s decision, the settlement will provide at least
$400 million to consumers, potentially reaching a total amount of
more than $560 million when combined with settlements with the
publishing companies – more than twice the amount of losses
suffered by the class of e-book purchasers. The decision rejects
Apple’s appeal and upholds Judge Cote’s findings. Apple may still
petition the Supreme Court to try and reverse Judge Cote and the
Second Circuit – both finding Apple liable for price-fixing
e-books. 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.
“Class counsel took risk in agreeing to a settlement in which
Apple paid $50 million if they won the appeal or $450 million if
they lost. We took that risk because we believed that the evidence
and the law supported our view that Apple’s conduct clearly
violated the Sherman Act,” said Steve W. Berman, managing partner
of Hagens Berman and lead attorney representing the consumer class.
“The decision today agrees with our view, shared by one of the most
respected district court jurists and appellate circuit courts in
the United States.”
Under the terms of the e-books settlement, Apple will pay
consumers $400 million, as Apple’s appeal of a 2013 bench ruling
found the company guilty of federal antitrust laws was 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
unsuccessfully appealed this ruling to the Second Circuit.
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. 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.
“This anticompetitive price-fixing collusion between Apple and
the publishers caused the price of e-books to skyrocket 30 to 50
percent,” Berman said. “We knew the legal battle for consumers
would be a challenge and include risks, and we’re pleased at the
recovery we have been able to secure.”
Read more about Hagens Berman’s lawsuit against Apple and e-book
publishers.
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 eight
times. More about the law firm and its successes can be found
at www.hbsslaw.com. Follow the firm for updates and news
at @ClassActionLaw.
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version on businesswire.com: http://www.businesswire.com/news/home/20150630006262/en/
Hagens Berman Sobol Shapiro LLPAshley Klann,
206-268-9363ashleyk@hbsslaw.com
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