This post has been updated.
Filed in April 2013 by law firm Giskan Solotaroff Anderson & Stewart, LLP against ASI and its parent company, Penguin Group, the suit alleged breach of contract, unjust enrichment, various violations of the California Business and Professional Code, and violation of New York General Business Law. Penguin was later dismissed from the case, along with some--but not all--of the claims against ASI.
The case proceeded to discovery, and in February of this year Giskan Solotaroff filed for class certification. On July 1, Judge Denise Cote denied certification. The parties then proceeded to settlement, which apparently has been reached, because on August 12, Judge Cote ordered the case to be discontinued.
It having been reported to the Court that this case has been settled, it is hereby ORDERED that the above-captioned action is hereby discontinued without costs to any party and without prejudice to restoring the action to this Court's calendar if the application to restore the action is made within forty-five days.The terms of the settlement have not been released. PW has more.
ASI is not clear of legal actions, however. Another lawsuit was filed in Indiana in March of this year, also by Giskan Solotaroff, with similar claims of fraud and unjust enrichment. According to Sarah Weinman, writing in Publishers Lunch (subscription required), this suit has been consolidated with another into a single case. Weinman notes:
Back in April, after the second suit was filed in Indiana, Oren Giskan told us the Indiana cases were filed "because we came to understand that all of the claims we wished to have resolved could only be done in the State of Indiana," where ASI has their headquarters.UPDATE 9/15: The Indiana lawsuit has also been dismissed. From PW:
A brief notice filed September 14 showed the case against Author Solutions in Indiana was voluntarily dismissed, with prejudice, with the parties agreeing to end litigation and to pay their own costs and attorney fees.