Norton Takes Legal Action Against Follett Over Unresolved Payments

In a recent legal development, W.W. Norton & Company has initiated a lawsuit against Follett Higher Education Group, claiming that they have not received over $8 million in payments. Filed in the Southern District of New York’s U.S. District Court, the suit highlights ongoing issues with delayed payments for both digital and print book sales through college bookstores managed by Follett according to Publishers Weekly.

According to the legal documents, Follett has significantly fallen behind on its financial obligations, despite repeated requests for payment from Norton. The publisher alleges that as of the lawsuit’s filing, Follett owes a staggering $8,337,126. Moreover, an additional amount of approximately $914,000 is projected to be due by the end of April.

The core of the dispute lies in the contractual agreement between Norton and Follett, which stipulates that Follett is responsible for collecting payments on behalf of Norton for digital content sales. Follett is then required to forward these collections to Norton within a 60-day timeframe following the end of the month in which the sales occurred, after accounting for certain deductions like Follett’s commission. For printed materials, this period extends to 90 days.

W.W. Norton is now seeking financial redress for what they describe as breach of contract, unjust enrichment, and conversion, pursuant to New York State law. This legal action underscores the challenges and complexities often encountered in the distribution and payment processes within the educational publishing industry.