SDNY Approves $450 Million Apple E-book Settlement | Practical Law

SDNY Approves $450 Million Apple E-book Settlement | Practical Law

The US District Court for the Southern District of New York approved a settlement agreement in which Apple Inc. agreed to pay $400 million to e-book consumers and $50 million to lawyers, pending appeal.

SDNY Approves $450 Million Apple E-book Settlement

Practical Law Legal Update 0-589-5225 (Approx. 3 pages)

SDNY Approves $450 Million Apple E-book Settlement

by Practical Law Antitrust
Published on 24 Nov 2014 • USA (National/Federal)
The US District Court for the Southern District of New York approved a settlement agreement in which Apple Inc. agreed to pay $400 million to e-book consumers and $50 million to lawyers, pending appeal.
On November 21, 2014, Judge Denise Cote of the US District Court for the Southern District of New York granted final approval of the settlement in In re Electronic Books Antitrust Litig., 859 F. Supp. 2d 671 (S.D.N.Y. 2012). The settlement's terms require Apple Inc. to pay:
  • $400 million to eligible e-book consumers, resulting in estimated payments of:
    • $6.05 to $6.54 per book for New York Times Bestsellers; and
    • $1.39 to $1.50 per book for non-bestsellers.
  • $50 million to legal counsel.
However, if Apple is successful in a pending appeal challenging Judge Cote's July 2013 ruling that it is liable for antitrust violations, Apple is only required to pay:
  • $50 million to consumers.
  • $20 million to legal counsel.
Judge Cote noted that the parties arrived at the settlement in June, just two months before a damages trial was set to begin. Attorneys general from 33 states and territories and the class of consumers were expected to request up to $840 million at trial. Earlier settlements with five major e-book publishers involved in the case saw Apple pay $166 million to consumers.
For more information on In re Electronic Books Antitrust Litig., see Legal Update, Court Rules Against Apple in E-books Case.