Feeds

Amazon pays $51m to settle Toys R Us divorce

Lawyers in toyland

Top three mobile application threats

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. ®

The Essential Guide to IT Transformation

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Airbus promises Wi-Fi – yay – and 3D movies (meh) in new A330
If the person in front reclines their seat, this could get interesting
UK Parliament rubber-stamps EMERGENCY data grab 'n' keep bill
Just 49 MPs oppose Drip's rushed timetable
Samsung threatens to cut ties with supplier over child labour allegations
Vows to uphold 'zero tolerance' policy on underage workers
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
prev story

Whitepapers

Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.