Feeds

Amazon pays $51m to settle Toys R Us divorce

Lawyers in toyland

Intelligent flash storage arrays

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. ®

Internet Security Threat Report 2014

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
Big Content outs piracy hotbeds: São Paulo, Beijing ... TORONTO?
MPAA calls Canadians a bunch of bootlegging movie thieves
Google Glassholes are UNDATEABLE – HP exec
You need an emotional connection, says touchy-feely MD... We can do that
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
Just don't blame Bono! Apple iTunes music sales PLUMMET
Cupertino revenue hit by cheapo downloads, says report
Hungary's internet tax cannot be allowed to set a precedent, says EC
More protests planned against giga-tariff for Tuesday evening
US court SHUTS DOWN 'scammers posing as Microsoft, Facebook support staff'
Netizens allegedly duped into paying for bogus tech advice
ISPs handbagged: BLOCK knock-off sites, rules beak
Historic trademark victory, but sunset clause applies to future blocks
prev story

Whitepapers

Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.