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States reach settlement with Penguin on ebooks

AUSTIN, Texas (AP) -- Texas Attorney General Greg Abbott says his office has settled a lawsuit the state had filed against Penguin Group Inc., accusing America's largest book publishers of colluding with Apple Inc. to raise ebook prices on customers.

Abbott said Wednesday an agreement was reached on behalf of Texas and 32 other states and territories that alleged Penguin had colluded with other major publishers and Apple to manipulate prices in the ebook market.

The agreement, if approved by a federal judge in New York, will provide $75 million in compensation to customers in the states and territories that sued, as well as individuals who had filed a related class action lawsuit.

Texas previously had settled with four other publishers.

The claims against Apple are scheduled for trial in June.