The e-commerce merchant, Amazon.com, will pay $51 million as the distributor of Toys R Us to end their five-year-old dispute. In a regulatory document submitted last Friday in the SEC (Securities and Exchange Commission), Amazon said the payment in the third quarter of 2009.
The lawsuit involved a partnership through which Toys R Us had obtained an exclusive right of distribution of toys on the e-commerce merchant's site in the United States. Amazon did not honour the agreement by appealing to other providers, according to the complaint filed by Toys R Us in 2004. Amazon, in the meanwhile, defended himself by saying that the distributor fails to guarantee the stock of products.
The settlement of the dispute in favour of Toys R Us, follows a ruling by an appellate court of New Jersey in April. The court upheld a trial decision, made in 2006 that Amazon.com had violated the agreement with the seller of toys.
The settlement of the dispute in favour of Toys R Us, follows a ruling by an appellate court of New Jersey in April. The court upheld a trial decision, made in 2006 that Amazon.com had violated the agreement with the seller of toys.
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