SEATTLE, Dec. 21, 2011 /PRNewswire/ -- U.S. District
Judge Denise Cote of the Southern
District of New York yesterday
appointed law firm Hagens Berman as lead counsel in a case alleging
that several e-book publishers conspired with Apple (NASDAQ: AAPL)
to fix the price of e-books.
The ruling came after several lawsuits, including Hagens Berman's, were moved from California to New
York. The lawsuits will now be consolidated, and attorneys
representing consumers are required to file an amended complaint by
Jan. 20, 2012.
The case alleges that five of the nation's top publishers,
including HarperCollins Publishers, a subsidiary of News
Corporation (NASDAQ: NWSA), Hachette Book Group, Macmillan
Publishers, Penguin Group Inc., a subsidiary of Pearson PLC (NYSE:
PSO) and Simon & Schuster Inc., a subsidiary of CBS (NYSE:
CBS), conspired with Apple to illegally fix the price of electronic
books, also known as e-books.
The five publishing houses forced Amazon to abandon its discount
pricing system and adhere to a new agency model, in which
publishers, rather than retailers, set prices, according to the
complaint. If Amazon refused to allow publishers to set prices, the
publishers threatened to deny the online retail giant permission to
sell the e-books.
The complaint, filed on Aug. 9,
2011, alleges that the deal was sparked by Apple, who had
adopted a similar pricing model for content on the iTunes store.
The company agreed to deals with the publishers to offer e-books
under the agency model on the iBookstore and signed "most favored
nation" clauses that prevented e-books from being sold elsewhere
for a lower price. The goal of these deals, according to the
lawsuit, was to prevent rival retailers, especially Amazon, from
discounting e-books, and thus undercutting Apple.
Following Amazon's acquiescence to the publishers' demands, the
price of e-books reportedly skyrocketed.
Yesterday's ruling means that the case will move forward with
Hagens Berman serving as lead
counsel representing consumers. The lawsuit proposes a class of
e-book consumers in several states across the country.
"We are pleased that the judge has recognized our work in
developing these claims by allowing us to represent consumers,"
said Steve Berman, managing partner
at the firm. "We believe that Apple and the publishers' actions
harmed consumers and look forward to making our case in court."
The lawsuit seeks damages for the purchase of e-books, an
injunction against pricing e-books with the agency model and
forfeiture of the illegal profits received by the defendants as a
result of their anticompetitive conduct which could total tens of
millions of dollars.
Hagens Berman invites potential
plaintiffs to contact the office at ebooks@hbsslaw.com or by phone
at 206-623-7292.
You can learn more about this case by visiting
www.hbsslaw.com/ebooks.
About Hagens Berman
Seattle-based Hagens Berman
Sobol Shapiro LLP is one of the top class-action law firms in the
nation, with offices in Boston,
Chicago, Colorado Springs,
Los Angeles, Minneapolis, New
York, Phoenix, San Francisco and Washington, D.C. Founded in 1993, we represent
plaintiffs in class actions and multi-state, large-scale litigation
that seek to protect the rights of investors, consumers, workers
and whistleblowers. More information about the firm is available at
www.hbsslaw.com.
Contacts
Firmani + Associates Inc.
Mark Firmani, 206-443-9357
mark@firmani.com
SOURCE Hagens Berman LLP