Apple Settles e-Book Price Fixing Lawsuit With U.S. States, Others

Jun 17, 2014 05:13 PM EDT | Matt Mercuro

Apple has reached an out-of-court settlement with U.S. states and other complainants in an e-book price-fixing class action lawsuit on June 16.

The agreement means Apple will avoid a trial in which the iPad maker faced over $800 million in claims.

U.S. District Judge in Manhattan Denise Cote ordered the parties to submit a filing to find obtain approval of their settlement within 30 days, according to Reuters.

The terms of the settlement have not been revealed. The terms still need court approval before it becomes official.

The U.S. Department of Justice sued Apple and five publishers in April 2012, claiming they were working together to illegally increase e-book prices.

The publishers include: Hachette Book Group, HarperCollins Publishers, Penguin Group (USA) Inc, Macmillan and Simon & Schuster Inc. They previously agreed to pay more than $166 million to settle related antitrust charges.

Over 33 states and U.S. territories have sued Apple on behalf of their consumers since then, while individual consumers in other states and territories filed a class action lawsuit, according to Reuters.

A trial scheduled for July 14 will decide the exact amount of damages e-book customers will receive. The complainants are looking for up to $840 million.

In July 2013, a federal court found Apple liable for working with the publishers after a non-jury trial in a case brought by the U.S. Department of Justice.

Cote determined that Apple took part in a price-fixing conspiracy to fight online retailer Amazon.com's dominance in the e-book market.

Apple is appealing the decision and the settlement is contingent on the outcome of the appeal.

"As set forth in the memorandum of understanding, any payment to be made by Apple under the settlement agreement will be contingent on the outcome of that appeal," said Steve Berman of Hagens Berman Sobol Shapiro, the plaintiffs' lead lawyer, in a letter to the judge, according to Reuters.

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