Publishers Weekly continues its reporting on the federal governments price-fixing case:
Lawyers for Penguin yesterday filed a petition with U.S. Second Circuit Court of Appeals challenging district Judge Denise Cote’s June 27 decision denying Penguin’s motion to compel arbitration for Amazon and Barnes & Noble e-book customers in the consumer class action case derived from an alleged e-book price-fixing scheme. In a separate development, the federal government said it will file its motion seeking final judgment against the three settling publishers in its federal antitrust suit by August 3.
In its original motion, filed March 2, Penguin sought to stay the consumer class action case against them, arguing that Amazon and B&N e-book purchasers expressly agreed in their license agreements to “arbitrate any claims arising from their purchases of e-books.” Cote, however, denied the motion, finding that even though the agreements might be “otherwise enforceable,” it was invalid in this matter, because it would prevent e-book customers from “vindicating their rights under the Sherman Act.” Cote also found that class action was preferable in the case, because it would be “economically irrational” to force the vast number individual e-book purchasers to litigate claims of a pricing conspiracy individually in arbitration proceedings.
Read the full article on Publishers Weekly: Penguin Lodges Appeal
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