Ohio Libraries, Schools to Receive CDs from Settlement

Ohio Attorney General Jim Petro announced the distribution of more than 222,000 compact discs to Ohio public schools, state universities and libraries as the result of a lawsuit settlement with recording companies.

“I am pleased that our schools and libraries will benefit from this settlement,” Petro said. “Moreover, music lovers will now be able to purchase CDs at competitive prices.”

The CDs will be sent out in early July. More than 165,000 CDs will be distributed to Ohio’s public libraries. Public school districts will get more than 53,000 CDs and state universities will receive 3,690. The number of CDs school districts and universities will receive will depend on enrollment, and the number libraries receive will be determined by circulation. Approximately 5.6 million CDs will be distributed throughout the nation.

A lawsuit was filed by Ohio and 42 other states alleging that recording companies attempted to fix CD prices in order to stop competition from discount stores. The settlement generated $67.3 million in cash and $75.7 million worth of CDs for our nation’s schools and libraries.

Consumers who purchased CDs between 1995 and 2000 were given the opportunity to apply for cash reimbursements online. At least 3.5 million people applied, and in April 2004, each consumer who filed a valid claim was sent check for $13.86.

The claim administrator, Rust Consulting in Faribault, Minn. will determine the final amount and content of each shipment to schools, universities and libraries.