$115M Penguin/Macmillan E-Book Class Action Settlement Wins Preliminary Approval

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UPDATE: Details on how to file a claim for the Penguin/Macmillan E-Book Class Action Settlement are up!

A New York federal judge last week granted preliminary approval to a pair of class action settlements worth $115 million that will resolve e-book price-fixing claims against Penguin Group USA Inc. and Macmillan Publishers Ltd.

The class action settlement provides for $90 million in payments from Penguin and $25 from Macmillan. Most of this money will be awarded to a class of consumers from 33 states who purchased e-books from the companies between April 1, 2010 and May 21, 2010. Under these agreements, Penguin has agreed to pay the consumer class $75 million and Macmillan will pay $20 million. The rest of the class action settlement money will be used to pay attorneys’ fees and costs for the class members and state governments.

In a ruling issued August 5, U.S. District Judge Denise Cote found that the class action settlement agreements “appear to be the product of serious, informed, noncollusive negotiations, have no serious deficiencies and fall within the range of possible approval.” Final approval of the e-book class action settlements will be determined at a hearing scheduled for December 6.

In the initial class action lawsuit, 33 state attorneys general and private consumers accused Penguin and Macmillan of conspiring with other publishing companies and Apple Inc. to manipulate e-book prices, forcing consumers to pay an artificially inflated price in violation of antitrust laws.

This alleged conspiracy was uncovered by the U.S. Department of Justice. The other publishing companies include Hachette Book Group, HarperCollins Publishers and Simon & Schuster.

In February, these three companies received final approval of a $69 million class action settlement which resolved the same claims from 49 state attorneys general. On Monday, Judge Cote granted preliminary approval of a $2.1 million class action settlement between these three publishing companies and Minnesota e-book purchasers.

Apple is the only of the listed defendants in the class action lawsuit who opted to go to trial. Last month, Judge Cote ruled that Apple conspired with other publishing companies to raise the prices of e-books from $9.99 to as much as $14.99. These inflated prices cost customers hundreds of millions of dollars. Apple intends to appeal Judge Cote’s decision.

The plaintiffs in the class action lawsuit are represented by Hagens Berman Sobol Shapiro LLP and Cohen Milstein, Sellers & Toll PLLC.

The Penguin/Macmillan E-Book Price-Fixing Class Action Lawsuit is In re: Electronic Books Antitrust Litigation, Case No. 1:11-md-02293, in the U.S. District Court for the Southern District of New York.

UPDATE: Amazon.com issued additional credits to eligible customers on July 23, 2015. Learn more.