Amazon.com Pays $51 Million to Settle Toys R Us Lawsuit

Authored by Mark Hefflinger on June 15, 2009 - 8:46am.

New York - Online retailer Amazon.com (NASD: AMZN) has agreed to pay $51 million to settle a lawsuit with toy retailer Toys R Us over their partnership to sell toys online, the Associated Press reported.

Toys R Us partnered with Amazon in 2000, shifting fulfillment for online orders on some products to Amazon.

The company sued Amazon in 2004, alleging the company allowed third-party companies to also sell products for which it had an exclusive deal with Amazon.

A federal court sided with Toys R Us in 2006, and an appellate court upheld that ruling two months ago.

Amazon said in an SEC filing that it will make the payment in the third quarter, but the charges will appear in its operating expenses for the second quarter.

Related Links:
http://snipurl.com/k6cqv (AP)