ABA ANNOUNCES SETTLEMENT -- INDUSTRY ABUSES REVEALED; ASSOCIATION TO CONTINUE STRUGGLE On Thursday, April 19, ABA announced that the association had reached a settlement in the legal action against Barnes & Noble and Borders. The ABA Board of Directors issued the following statement: A Statement of the American Booksellers Association Board of Directors -- April 19, 2001 Today the American Booksellers Association and 26 bookstore plaintiffs settled their legal battle with Barnes & Noble and Borders. The exact terms of that settlement are outlined in the Settlement Agreement. ABA and the plaintiffs agreed to accept the $4.7 million offered by the defendants for several distinct reasons. The objectives of the litigation have, by and large, been achieved. In bringing suit against the defendants, it was hoped that light would be cast upon a variety of practices within the industry that favored the chains and put independent bookstores at a competitive disadvantage. The scrutiny brought by the suit has revealed such practices existed in the past and, to a certain extent, exist today, but, in great degree, the industry has been reformed. Many of the most egregious practices have stopped, and, in our opinion, the way to address and change those that remain is through negotiation, discussion, and an open airing of issues with publishers, wholesalers, and distributors. The issues are on the table. They can no longer be ignored or denied -- the lawsuit has accomplished that end. Further, by accepting the offer of $4.7 million, the ABA has insured its ability to carry on its aggressive advocacy efforts on behalf of independent booksellers into the future. The legal settlements received in the earlier publisher suits, the $25 million received from Penguin USA, and the current settlement allow ABA to "keep the light on" and to be vigilant in its pursuit of maintaining an equitable retail landscape. The goals that could be achieved through litigation have been accomplished -- at least for now. However, as the settlement agreement makes clear, independent booksellers retain all their options to address grievances in the future -- including legal ones. Commenting on the settlement, ABA President Neal Coonerty said: "I am pleased to announce the settlement of the litigation by 26 bookstore plaintiffs and ABA against Barnes & Noble and Border�s. From the beginning we have sought to bring to light the system of secret illegal deals that operated to the competitive disadvantage of independent booksellers nationwide. Through the legal process those arrangements have been brought out and many have changed. Those that remain -- and, make no mistake, some do remain -- are better handled through negotiation rather than the unbelievably expensive trial process. The $4.7 million paid to ABA by the defendants together with our existing endowment insures that ability to move ahead with vigor to address the remaining issues as well as any new situations that may arise. I do not want to forget to pay tribute to the 26 courageous booksellers who stood firm in the face of tremendous pressure for the common cause of equity in our industry. They are to be commended and thanked." _____________________________________________ To view past ABA Litigation Updates, click here. If you wish to receive ABA Litigation Update as a daily e-mail, send an e-mail to [email protected] and fill in the subject as "Opt-in to ABA Litigation Update." In the body of the e-mail, please indicate the address at which you would like to receive your e-mail if it is not the same one from which you are e-mailing us, and include the addresses of any of your colleagues who would like to receive these daily updates. Topics: Fair Trade (B&N, Borders), ABA Flash, About ABA,