November 16, 2017

Simon & Schuster Reaches Antitrust Settlement with States

Simon & Schuster has settled the ebook price-fixing suit brought by various state attorney generals, according to CNET.

Simon & Schuster and the plaintiff states told the court they had signed a Memorandum of Understanding on May 10 and intend to enter into a settlement agreement, but no terms have yet been disclosed. The plaintiff states must subsequently file a proposed notice and distribution plan for compensation to affected consumers. The states filed an amended complaint on May 11 against the remaining holdouts, Apple, Macmillian, and Penguin, all of whom are unlikely to settle.

Some 16 states originally filed the antitrust suit against the publishers in early April, as well as against Apple, Macmillan, Penguin, Hachette, and HarperCollins, following the lead of the U.S. Department of Justice. More joined on May 11.

Judge Denise Cote granted the motion to dismiss Simon & Schuster from the complaint on May 15. The company had already settled with the U.S. Department of Justice by the time the federal antitrust action was announced, as did Hachette and HarperCollins, who had previously settled with the states as well.

Meredith Schwartz About Meredith Schwartz

Meredith Schwartz (mschwartz@mediasourceinc.com) is Executive Editor of Library Journal.

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