A PYMNTS Company

US: Judge Cote overcomes doubts to approve Apple eBook settlement

 |  August 3, 2014

US District Judge Denise Cote has reportedly approved of Apple’s proposed $450 million settlement to end litigation against the company for manipulating eBook prices, despite having doubted terms the settlement last month.

Apple offered $400 million in settlement funds with an additional $50 million for lawyers’ fees to end litigation filed by dozens of states for eBook price-fixing after the US Department of Justice won a lawsuit against Apple for the allegations.

But Apple has appealed the ruling in the suit against the DOJ, and if that appeal is successful, the class action settlement is in jeopardy.

According to reports, if Apple’s appeal is successful, the $450 million settlement will be reduced to just $70 million – $50 million in settlement funds for consumers, and $20 million for lawyers’ fees.

Judge Cote had expressed doubts over the fairness of the settlement’s dependence on Apple’s appeal, but said in her decision to approve of the offer that she is confident the appeals court will affirm her earlier findings that Apple did violate antitrust laws in its eBooks business practices.

Full content: DNA

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.