Second Circuit upholds District Court decision, Apple loses appeal
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http://www.hbsslaw.com
SEATTLE -- (Business Wire)
Hagens Berman attorneys representinga class of e-book purchasers
announced today that the Second Circuit has affirmed a District Court
ruling, bringing consumers one step closer to a proposed $450 million
settlement with Apple (NASDAQ: AAPL) for its role in an alleged
e-book price-fixing scheme with five of the nation’s largest
publishing companies.
With the court’s decision, the settlement will provide at least $400
million to consumers, potentially reaching a total amount of more than
$560 million when combined with settlements with the publishing
companies – more than twice the amount of losses suffered by the class
of e-book purchasers. The decision rejects Apple’s appeal and upholds
Judge Cote’s findings. Apple may still petition the Supreme Court to try
and reverse Judge Cote and the Second Circuit – both finding Apple
liable for price-fixing e-books. Hagens Berman litigated the case
jointly with the attorneys general from 33 U.S. states and territories.
The class of consumers alleged that Apple illegally colluded with a
group of five publishing companies to manipulate the e-book market by
artificially raising the price of e-books, lowering competition and
charging consumers higher prices.
“Class counsel took risk in agreeing to a settlement in which Apple paid
$50 million if they won the appeal or $450 million if they lost. We took
that risk because we believed that the evidence and the law supported
our view that Apple’s conduct clearly violated the Sherman Act,” said
Steve W. Berman, managing partner of Hagens Berman and lead attorney
representing the consumer class. “The decision today agrees with our
view, shared by one of the most respected district court jurists and
appellate circuit courts in the United States.”
Under the terms of the e-books settlement, Apple will pay consumers $400
million, as Apple’s appeal of a 2013 bench ruling found the company
guilty of federal antitrust laws was dismissed. In July 2013, after a
trial involving the Department of Justice and numerous state attorneys
general, Judge Cote of the District Court for the Southern District of
New York found Apple guilty of violating both federal and state
antitrust laws. Apple unsuccessfully appealed this ruling to the Second
Circuit.
Prior to this proposed settlement, Hagens Berman and the state attorneys
general secured $166 million in settlements on behalf of consumers from
the five publishing companies that allegedly conspired with Apple.
Hagens Berman represents purchasers of e-books in 19 states and four
U.S. territories, with the balance of the states represented by their
respective attorneys general.
“This anticompetitive price-fixing collusion between Apple and the
publishers caused the price of e-books to skyrocket 30 to 50 percent,”
Berman said. “We knew the legal battle for consumers would be a
challenge and include risks, and we’re pleased at the recovery we have
been able to secure.”
Read more about Hagens
Berman’s lawsuit against Apple and e-book publishers.
About
Hagens Berman
Hagens Berman Sobol Shapiro LLP is a consumer-rights class-action law
firm with offices in nine cities. The firm has been named to the
National Law Journal’s Plaintiffs’ Hot List eight times. More about the
law firm and its successes can be found at www.hbsslaw.com.
Follow the firm for updates and news at @ClassActionLaw.
View source version on businesswire.com: http://www.businesswire.com/news/home/20150630006262/en/
Contacts:
Hagens Berman Sobol Shapiro LLP
Ashley Klann, 206-268-9363
ashleyk@hbsslaw.com
Source: Hagens Berman Sobol Shapiro LLP
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