Royalty payment class actions: Opt-in? Opt-out? How does it affect me?
In recent years multiple class action lawsuits have been filed against the biggest textbook publishers, challenging their royalty-payment practices. In 2016, it was a suit against Pearson, alleging (among other things) gray market sales to international subsidiaries, paying lower international royalty rates, and then shipping books back into the U.S. for retail sales.
1 More recently, there have been suits against Cengage, challenging “Cengage Unlimited,” Cengage’s all-access, Netflix-like subscription model.
2 McGraw-Hill was also sued, in January, for improper royalty payment practices on its “Connect” products.
3
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