Apple has agreed to pay $450 million to resolve state and consumer claims that the iPad manufacturer conspired with five major publishers to fix e-book prices, according to court records filed Wednesday.
The settlement, which would provide $400 million for consumers, is conditioned on the outcome of a pending appeal of a New York federal judge’s ruling last year that Apple was liable for violating antitrust laws.
A ruling by the U.S. Court of Appeals for the 2nd Circuit in New York reversing the judge could, under the settlement, either reduce the amount Apple pays to $70 million, with $50 million for consumers, or eliminate payments altogether.
The settlement, which requires approval of U.S. District Judge Denise Cote, had been announced last month. Terms were not disclosed at the time. It came ahead of an Aug. 25 damages trial in which attorneys general in 33 states and territories and lawyers for a class of consumers were expected to seek up to $840 million.
The deal follows earlier settlements with five publishers that provided $166 million for e-book purchasers.
The Justice Department and the state attorneys general sued Apple and five publishers in April 2012, accusing them of working together illegally to increase e-book prices.
In July 2013, Cote found Apple liable for colluding with the publishers to impede e-book competitors such as Amazon.com after a nonjury trial.
Roche’s experimental drug crenezumab failed to delay a decline in thinking and memory skills in people with Alzheimer’s disease, a result likely to bolster a growing belief that drugs need to be given in earlier stages of the disease to show a benefit.
The Swiss drugmaker’s treatment was tested in patients with mild to moderate forms of Alzheimer’s, a fatal, brain-wasting condition that gradually robs patients of their ability to think and care for themselves.
Results of a Phase II study involving 431 patients found crenezumab failed to significantly slow cognitive and functional decline compared to a placebo, missing the study’s two main goals, Roche said in a statement Wednesday.
But an exploratory analysis of patients with a milder form of the disease who received a higher dose of crenezumab via an intravenous infusion showed a statistically significant reduction in cognitive decline, Roche said.
Analysts had anticipated limited success for crenezumab after a similar treatment from Pfizer and Johnson & Johnson called bapineuzumab, and solanezumab, a drug from Eli Lilly, failed in late-stage trials. All three drugs work by blocking the toxic protein beta-amyloid that forms plaques in the brain believed to signal the onset of the disease.
● Yum Brands reported a 19 percent increase in second-quarter profits, boosted by rebounding business at KFC in China, where worries about food safety have eased. The Louisville-based company, which also operates Taco Bell and Pizza Hut, said sales at established locations in China surged 15 percent. But in the United States, KFC and Pizza Hut continued to face sluggish sales. KFC reported that sales at established restaurants were down 2 percent, while that figure fell 4 percent at Pizza Hut. Taco Bell sales at established restaurants rose 2 percent.
● Bank of America said its second-quarter earnings were hit by higher litigation expenses. The Charlotte-based bank earned $2 billion in the second quarter after payments to preferred shareholders, compared with $3.6 billion in the same period a year earlier, a decline of 43 percent. Revenue fell 4 percent to $21.9 billion from $22.9 billion. Per share, the bank’s earnings worked out to 19 cents, compared with 32 cents a year ago. The bank’s litigation costs of $4 billion crimped earnings by 22 cents a share.
● EBay said its second-quarter net income rose 6 percent, as strong growth from its PayPal business offset lower-than-expected revenue that was hampered by a global password reset after a cyberattack in May. PayPal, which eBay bought for $1.3 billion in late 2002, gained 4 million new active registered accounts to end the quarter up 15 percent to 152 million. The San Jose-based company said net income increased to $676 million from $640 million in the same quarter a year ago.
● Industrial production climbed in June to cap the strongest quarter in almost four years. A 0.2 percent increase in output at factories, mines and utilities last month followed a revised 0.5 percent advance in May, figures from the Federal Reserve showed.
● The economy kept expanding in all regions of the country in June and early July, helped by strength in consumer spending, according to a Federal Reserve survey, known as the Beige Book. All 12 of the Fed’s regions reported growth, with five — New York, Chicago, Minneapolis, Dallas and San Francisco — characterizing growth as “moderate” while the others reported “modest” growth. Boston and Richmond reported that growth came in at a slightly slower pace than the previous reporting period.●
— From news services
● 8:30 a.m.: Housing starts for June and weekly jobless claims.
● 10 a.m.: Weekly mortgage rates.
● Earnings: Capital One Financial, Google, Morgan Stanley.