Random House to Settle James Frey Class Action Suit
A class action lawsuit was brought on behalf of the readers who purchased James Frey’s A Million Little Pieces. A settlement has been approved reimbursing readers who bought the book before it was revealed that the memoir was fictionalized.
Only 1729 purchasers have availed themselves of the refund opportunity. Random House has reserved $2.35 million to settle pay claims, advertising costs, and attorneys fees. Currently the payout looks like this:
- Readers refunds: $27,348.00
- Lawyers fees: $738,000
- Advertising and settlement costs: $432,000
- American Red Cross, the Hazelden addiction treatment center and First Book donations: $180,000
Advertising for James Frey’s next book: Priceless.