SAN FRANCISCO (AP) - Apple will refund up to $400 million to consumers ensnared in a plot to raise the prices of digital books unless the company gets a court to overturn a decision affirming its pivotal role in the collusion.
The settlement bill emerged in a Wednesday court filing made a month after attorneys suing Apple notified U.S. District Judge Denise Cote in New York that an agreement had been reached to avoid a trial over the issue.
Lawsuits filed on behalf of digital book buyers had originally been seeking damages of up to $840 million after Cote ruled in a separate trial last year that Apple Inc. had violated U.S. antitrust law by orchestrating a price-fixing scheme with five major publishers of electronic books.
Cote's decision sided with the U.S. Justice Department's contention that Apple's late CEO, Steve Jobs, had schemed with major e-book publishers to charge higher prices in response to steep discounts offered by Amazon.com Inc. Jobs, who died in October 2011, negotiated the deals as Apple was preparing to release the first iPad in 2010.
Apple is appealing Cote's decision from last year. The Cupertino, California, company won't have to pay the $400 million settlement if it prevails. If the appeals court voids Cote's verdict and returns the case to her for further review, Apple would still have to refund $50 million to consumers. No money will be owed if the appeals court concludes that Apple didn't break any antitrust laws.