The long pending e-book price-fixing case against
) may wind down soon given that a U.S. District Judge approved the
final settlement amount of $450 million that the company offered to
Last week, U.S. District Judge Denise Cote approved Apple's $450
million settlement ($400 million to consumers and $50 million to
lawyers) provided that the appeals court also finds Apple guilty as
charged. The company agreed to pay the amount in June this year,
when its opponents sought a fine of up to $840 million.
In Jun 2013, Judge Cote ruled that the iPhone maker had
conspired with five U.S. publishers to raise e-book prices. Though
the accused publishers - Hachette Book Group, News Corp.'s (
) HarperCollins, Holtzbrinck Publishers, Pearson's Penguin Group
and CBS Corp's (
) Simon & Schuster Inc. - settled with the U.S. Department of
Justice (DOJ), Apple challenged the verdict in appeals court.
If the appeals court sends the case back to Judge Cote for
reconsideration or starts a new trial, then Apple shall only be
liable to pay $50 million to consumers plus $20 million to lawyers
instead of the offered $450 million. Reportedly, the verdict will
be announced after Dec 15 and the recipients will be notified via
email about the settlement amount.
The settlement process shows the court's relentless effort to
fast track the complicated case to offer quick resolutions to
aggrieved parties in the long-pending case.
Apple is also facing a number of other legal headwinds,
including pending patent infringement lawsuits. The company
continues to deny any wrong doing in the case and awaits the
appeals court's verdict.
Apple currently has a Zacks Rank #1 (Strong Buy). Other stock
with Zacks Rank #1 iinclude Carbonite, Inc. (
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