If You Are an Author Who Entered a Publishing Agreement with Cengage Learning, Inc. ("Cengage"), or One of Its Predecessors-in-Interest, You Could Get Money from a Settlement

NEW YORK, Dec. 30, 2024 /PRNewswire/ -- A Settlement has been reached with Cengage in a lawsuit known as Bernstein, et al., v. Cengage Learning, Inc., Case No. 19-cv-7541-ALC-SLC, in the United States District Court for the Southern District of New York. Your rights may be impacted.

Plaintiffs allege that Cengage has calculated and paid royalties from sales of MindTap and subscriptions to Cengage Unlimited in breach of contract and in bad faith. Cengage has agreed to settle the case, but has done so with no admission of liability. 

You are included as a Settlement Class Member if you are an author of royalty-bearing work or works who entered into a publishing agreement with Cengage Learning, Inc., or one of its predecessors-in-interest, and whose royalty-bearing work or works have (a) been sold as a component of a MindTap product and have been assigned a Digital Royalty Allocation other than 100%, or (b) been available on Cengage Unlimited.  This includes the heir(s) of any author who meets the foregoing criteria and/or the assignee of the contractual rights of any such author.  For example, if your deceased parent was an author who, if still alive, would satisfy the criteria listed above, and you inherited her right to receive royalties, then you are a class member. Similarly, if you are a corporation or individual, and an author who satisfies the criteria listed above assigned her rights to you, then you are a class member.

If the Settlement is approved and becomes final, it will provide money to Settlement Class Members.  Cengage will fund a cash settlement fund in the amount of $20,990,000, plus any interest owed.  The Settlement Fund will pay attorneys' fees and costs, costs of notice and administration, and service awards to Class Representatives, subject to approval by the Court. The remaining Net Settlement Fund will be distributed to Settlement Class Members.

In addition, Cengage will release any and all claims against Settlement Class Members related to any alleged past overpayment of royalties to Settlement Class Members on MindTap sales or Cengage Unlimited subscription revenue.

Your Rights and Options

If you do nothing, you will be bound by the Settlement and the Court's decisions. Eligible Class Members will receive a cash payment if the Settlement is approved based on your total historical damages from sales of your work(s) (i) on MindTap and (ii) subscriptions to Cengage Unlimited relative to the aggregate damages of all Settlement Class Members. Each Class Member will receive a pro rata distribution from the Net Settlement Fund according to their individual damages, with a minimum payment of $25 assured. The amount of your payment will depend on your calculated damage amount relative to the aggregate damages of all Settlement Class Members, and the amount of money in the Net Settlement Fund.

If you want to keep your right to sue Cengage yourself, you must exclude yourself from the Settlement by January 22, 2025.  If you stay in the Settlement but do not agree with the terms, you may object to it by January 22, 2025. 

The Court will hold a telephonic hearing on February 26, 2025 at 3:00 PM ET, to consider whether to approve the Settlement, a request for attorney's fees of up to 33 1/3% of the Settlement Fund, reimbursement of expenses, and a service award of up to $16,500 for each of the Class Representatives. You or your own lawyer may appear at the hearing at your own expense, but you do not have to attend.

Questions? Visit www.cengageroyaltiesclassaction.com or call 1-833-915-1142.

Please do not contact the Court.

SOURCE Susman Godfrey L.L.P.