Penguin agrees to pay $75 million in consumer damages following eBook price fixing case
We already knew back in December that Pearson, along with a handful of other publishers had decided to settle with the U.S. Department of Justice in the high-profile Apple ebook price-fixing case. Today a statement from Peason’s Penguin unit confirms that it has now also reached an agreement that will see the publisher pay $75 million in consumer damages to the US State Attorneys General on behalf of people that were overcharged due to the alleged price fixing:
Penguin has reached a comprehensive agreement with the US State Attorneys General and private class plaintiffs to pay $75 million in consumer damages plus costs and fees to resolve all antitrust claims relating to eBook pricing. Penguin has also committed to the State Attorneys General to abide by the same injunctive relief as previously agreed in a separate settlement with the Department of Justice.
In anticipation of reaching this agreement, Pearson had made a $40m provision for settlement in its 2012 accounts. An incremental charge will be expensed in Pearson’s 2013 statutory accounts as part of the accounting for the Penguin Random House joint-venture.