Toys R Us Takes Ball, Amazon’s $51 million, Goes Home
The long-standing legal dispute between Toys R Us and Amazon has been resolved in toy retailer’s favor, but at a much discounted price. In a regulatory filing submitted to the SEC Friday, Amazon said it has agreed to pay Toys R Us $51 million to settle claims that it violated an earlier exclusivity agreement with the company. Quite a sum, but far less than the $93 million in damages Toys R Us demanded when it first sued Amazon in 2004, accusing it of violating their partnership by allowing other merchants to peddle toys and baby products on its pages.
Amazon (AMZN) hasn’t yet commented on the settlement beyond the filing, which offers little more information than that it was “unanticipated” and will be charged to “other operating expense” in the second quarter.