Judge approves Apple’s e-book lawsuit settlement proposal, ahead of appeal

Judge approves Apple’s e-book lawsuit settlement proposal, ahead of appeal

A judge has approved Apple's $450 million settlement proposal for the ongoing e-book price-fixing lawsuit.

And Apple’s years-long battle against antitrust allegations continues.

According to a report from Reuters, Apple’s $450 million settlement proposal – concerning the company’s supposed e-book price-fixing scheme from all the way back in 2009 and 2010 – has finally been accepted by the court. Apple had originally proposed the settlement in July, but it took four months for plaintiffs to consider the settlement, and for United States District Court judge Denise Cote to approve it.

Not that Apple will be cutting a check just yet. While Cote found Apple guilty of price-fixing and antitrust allegations in July 2013, the company has appealed the decision and used delay tactics to put off making payments to plaintiffs. The original lawsuit, brought by the United States Justice Department, held that Apple had conspired with five of the “Big Six” book publishers to drive up prices for e-books.

The five publishers – HarperCollins, Macmillan, Hachette, Simon & Schuster, and Penguin – settled out of court before the trial began. Those settlements equated to $166 million. Apple, meanwhile, has maintained its innocence all along, even after judge Cote found the company guilty of antitrust allegations. That guilty verdict opened the floodgates for civil lawsuits, and Apple was expected to face class action claims and attorney general suits that would have likely amounted to $840 million in damages.

The now-approved settlement would stop the damages trial from going forward, and would require Apple to $400 million to consumers and $50 million to lawyers. Those amounts will only be paid after Apple’s appeal in the case is decided, and even then, consumers may never get the money. If the appeal upholds Cote’s verdict from last summer, Apple will pay the $450 million. If the appeal finds Apple not guilty, though, the company would not owe a dime to consumers or lawyers.

It is also possible that the appellate court could simply overturn the decision and call for a new verdict or trial from Cote. In that case, Apple would still owe money – about $50 million to consumers and $20 million to lawyers – but would also have another chance to state its case. In any case, it could be a very long time until the case is truly settled, which is why Cote thinks that plaintiffs agreed to the $450 million settlement at all.

Apple’s appeal will be heard by a Federal court on December 10.

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