Apple Faced With $840 Million Claim Over E-Books Price Fixing

Apple has been hit with a new damages claim of $840 million for conspiring to fix E-Book prices with publishers, leading to higher prices across the industry. The claim, which was filed Friday in New York, claims that Apple owes American E-Book customers a minimum of $280 million in damages. Steve Berman, an attorney representing consumers and 33 states, argues that E-Books prices rose 18.1 percent, equaling about $280 million in damages.

State attorneys general and consumers who sued the world’s most valuable technology company over its e-book pricing are seeking $280 million in damages and want that amount tripled, a lawyer for them said in a filing yesterday with the federal judge in Manhattan who presided over the U.S. case against Apple.

The plaintiffs say they’re entitled to triple damages under antitrust law because the U.S. had already “conclusively proven” at a trial last year that Apple orchestrated a conspiracy to fix prices. The amount sought is 0.5 percent of the $158.8 billion in cash that the Cupertino, California-based company reported that it had as of the end of 2013.

U.S. District Judge Denise Cote said she will hold a trial this year on the damages sought by the states. While almost all the documents filed by the states and Apple have been redacted or filed under seal, the plaintiffs said in a memo to Cote “the conspiracy caused widespread antitrust injury to e-book consumers” that an expert set at at least $280 million.

For most of us, $280 million seems like a lot -- however if Apple were to hand over that much, it would be just half a percent (.5%) of its total $158.8 billion cash it has on hand.

via Bloomberg