Three authors have begun a federal class action suit against Penguin and its self-publishing services provider, Author Solutions, seeking damages of more than $5 mn. Says Publishers Weekly: The suit, which seeks class action status, alleges that Author Solutions misrepresents itself, luring authors in with claims that its books can compete with “traditional publishers,” offering “greater speed, higher royalties, and more control for its authors.” The company then profits from “fraudulent” practices, the complaint alleges, including “delaying publication, publishing manuscripts with errors to generate fees, and selling worthless services, or services that fail to accomplish what they promise.” The suit also alleges that Author Solutions fails to pay its authors the royalties they are due. Publishers Weekly reports that the suit has been filed in the Southern District of New York and will be heard by Judge Denise Cote, who is current hearing the ebook price-fixing case.
via Penguin And Author Solutions Sued For Deceptive Practices.