Court Selects Hagens Berman to Represent E-Book Consumers

SEATTLE, Dec. 21, 2011 /PRNewswire/ -- U.S. District Judge Denise Cote of the Southern District of New York yesterday appointed law firm Hagens Berman as lead counsel in a case alleging that several e-book publishers conspired with Apple (NASDAQ: AAPL) to fix the price of e-books.

The ruling came after several lawsuits, including Hagens Berman's, were moved from California to New York. The lawsuits will now be consolidated, and attorneys representing consumers are required to file an amended complaint by Jan. 20, 2012.

The case alleges that five of the nation's top publishers, including HarperCollins Publishers, a subsidiary of News Corporation (NASDAQ: NWSA), Hachette Book Group, Macmillan Publishers, Penguin Group Inc., a subsidiary of Pearson PLC (NYSE: PSO) and Simon & Schuster Inc., a subsidiary of CBS (NYSE: CBS), conspired with Apple to illegally fix the price of electronic books, also known as e-books.

The five publishing houses forced Amazon to abandon its discount pricing system and adhere to a new agency model, in which publishers, rather than retailers, set prices, according to the complaint. If Amazon refused to allow publishers to set prices, the publishers threatened to deny the online retail giant permission to sell the e-books.

The complaint, filed on Aug. 9, 2011, alleges that the deal was sparked by Apple, who had adopted a similar pricing model for content on the iTunes store. The company agreed to deals with the publishers to offer e-books under the agency model on the iBookstore and signed "most favored nation" clauses that prevented e-books from being sold elsewhere for a lower price. The goal of these deals, according to the lawsuit, was to prevent rival retailers, especially Amazon, from discounting e-books, and thus undercutting Apple.

Following Amazon's acquiescence to the publishers' demands, the price of e-books reportedly skyrocketed.

Yesterday's ruling means that the case will move forward with Hagens Berman serving as lead counsel representing consumers. The lawsuit proposes a class of e-book consumers in several states across the country.

"We are pleased that the judge has recognized our work in developing these claims by allowing us to represent consumers," said Steve Berman, managing partner at the firm. "We believe that Apple and the publishers' actions harmed consumers and look forward to making our case in court."

The lawsuit seeks damages for the purchase of e-books, an injunction against pricing e-books with the agency model and forfeiture of the illegal profits received by the defendants as a result of their anticompetitive conduct which could total tens of millions of dollars.

Hagens Berman invites potential plaintiffs to contact the office at [email protected] or by phone at 206-623-7292.

You can learn more about this case by visiting www.hbsslaw.com/ebooks.

About Hagens Berman

Seattle-based Hagens Berman Sobol Shapiro LLP is one of the top class-action law firms in the nation, with offices in Boston, Chicago, Colorado Springs, Los Angeles, Minneapolis, New York, Phoenix, San Francisco and Washington, D.C. Founded in 1993, we represent plaintiffs in class actions and multi-state, large-scale litigation that seek to protect the rights of investors, consumers, workers and whistleblowers. More information about the firm is available at www.hbsslaw.com.

Contacts
Firmani + Associates Inc.
Mark Firmani, 206-443-9357
[email protected]  

SOURCE Hagens Berman LLP