Apple has always denied that its super cool pricing cartel idea was illegal and that it did anything wrong. In fact it is appealing its conviction. The settlement is conditional on Apple not getting the case overturned on appeal.
US District Judge Denise Cote approved a $450 million settlement of claims Apple harmed consumers by conspiring with five publishers to raise e-book prices on Friday. In approving the settlement, Cote overcame concerns she had expressed over a settlement provision allowing Apple to pay just $70 million if related litigation were to drag out.
That accord calls for Apple to pay $400 million to consumers and $50 million to lawyers if the federal appeals court in New York upholds Cote’s findings, and nothing if the Cupertino, California-based company wins its appeal.
But if the appeals court overturns Cote and returns the case to her, perhaps for a new trial, Apple will owe only $US50 million to consumers and $US20 million to lawyers.
But in Friday’s decision, she noted that the states and consumers “strongly believe” such a scenario is unlikely, and that the settlement has provisions to reduce its likelihood.
She also said the plaintiffs agreed to provide more details about the settlement to consumers, to help them decide whether to accept its terms or sue Apple separately.