Settlement News for Authors with Cengage
A significant settlement has been established involving Cengage Learning, Inc. This settlement comes as a result of a class action lawsuit that raises important questions about the rights of authors regarding royalty payments. If you have ever collaborated with Cengage under a publishing agreement and authored works that fall under their royalty programs, your financial interests may be affected positively by this settlement.
Understanding the Allegations Against Cengage
The class action lawsuit, known as Bernstein, et al., v. Cengage Learning, Inc., revolves around claims that Cengage did not honor contractual agreements concerning the calculation and payment of royalties for works sold through its platforms, such as MindTap and Cengage Unlimited. The plaintiffs indicated that their agreements were breached and questioned Cengage's good faith in these transactions, potentially impacting numerous authors and their earnings.
Who Qualifies for the Settlement?
Authors who entered into publishing agreements with Cengage or its predecessors may be included as Settlement Class Members. You are eligible if you have authored any works that have been sold under a MindTap product with a Royalty Allocation of less than 100%, or works available via Cengage Unlimited. Additionally, heirs or assignees of authors meeting these criteria can also be eligible for claims.
The Implications of the Settlement
If the settlement receives court approval, an estimated sum of $20,990,000 will be available for distribution among eligible class members. This settlement fund will also cover attorney fees, administrative costs, and service payments to those who represent the class. The remaining net funds will be divided according to the specified criteria to ensure fair compensation for each qualifying author.
Your Rights and Options
As a Settlement Class Member, it is essential to understand your rights. By doing nothing, you automatically accept the settlement terms and will benefit from any cash payments determined by your historical royalty damages on your works.
Steps to Take if You Want to Opt Out
If you desire to retain your right to independently sue Cengage, you must exclude yourself from this settlement by a specified deadline. The court has designated January 22, 2025, as the critical date for any exclusions or objections to the settlement. Make your intentions clear before this date to secure your interests.
Upcoming Court Hearing
A hearing will be conducted by the court on February 26, 2025, at 3:00 PM ET. This hearing will determine whether to approve the settlement and will also address requests related to attorney's fees and representative awards. If you wish, you may attend the hearing or have your attorney present, yet attendance is not mandatory.
FAQs About the Settlement
What is the nature of the lawsuit against Cengage?
The lawsuit addresses claims that Cengage did not properly calculate and pay royalties for works sold on its platforms, raising concerns about potential contractual breaches.
Who is considered a Settlement Class Member?
Authors who have published works under a Cengage agreement and whose works were sold under royalty reservations are part of this settlement, including their heirs or assignees.
What will Settlement Class Members receive?
If approved, Settlement Class Members could potentially receive a cash payment derived from the settlement fund, with a guaranteed minimum payment of $25.
How can I opt-out of the settlement?
To opt-out, you must submit a notice excluding yourself from the settlement by January 22, 2025. Ensure your request is filed properly within the timeframe.
Where can I get more information?
For additional details, authors can visit the official settlement website or contact provided phone numbers. This ensures you receive up-to-date information directly related to the settlement proceedings.
