Feeds

Amazon pays $51m to settle Toys R Us divorce

Lawyers in toyland

3 Big data security analytics techniques

Amazon.com must pay Toys R Us $51 million to settle a 2004 lawsuit seeking to scrap an exclusive distribution deal with the toy retailer.

The web retailer said in a filing with the US Securities and Exchange Commission its an "unanticipated" sum that will be payed in full during its third quarter. In return, Toys R Us is dropping its charges.

Five years ago, Toys R Us sued Amazon for allegedly seeing other toymakers when it had a pact making it the sole supplier of toys, games and babystuff sold on Amazon.com.

Amazon answered with a counter-suit, seeking to nix the deal based on claims Toysrus.com "failed to effectively choose the top toys and baby products and to keep products in stock," particularly during the holiday season. The online storefront demanded $750m in damages as well as the contractual divorce. The partnership was supposed to last through 2010.

Things obviously didn't go as planned for Amazon. According to a separate SEC filing from Amazon, in March 2006, the court entered a judgment in favor of Toys R Us, although it declined to award damages to either party.

Later in March 2009, an appellate court affirmed the previous ruling but reversed the ruling on damages. According to Amazon, Toys R Us was asking for about $93m including pre- and post-judgment interest. Amazon called the claim "grossly overstated" in it's SEC filing.

In a filing of its own, Toys R Us said the $51m settlement must be paid within 45 days of the agreement. ®

High performance access to file storage

More from The Register

next story
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
It may be ILLEGAL to run Heartbleed health checks – IT lawyer
Do the right thing, earn up to 10 years in clink
prev story

Whitepapers

Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
SANS - Survey on application security programs
In this whitepaper learn about the state of application security programs and practices of 488 surveyed respondents, and discover how mature and effective these programs are.