McGraw Hill LLC (“Company”) faces a potential class action lawsuit which alleges that authors who contributed to the Company’s textbooks had their royalties reduced when these textbooks were sold in electronic format. The complaint alleges that McGraw’s publishing agreement copyrights all author’s materials to the Company and then the Company publishes, sells and pays the authors a per-sale percentage royalty.

The complaint further states that on or about 2009, the Company instituted Connect, an online platform that distributes online textbooks. The complaint states that authors were paid for their online sales as a single unit until recently when the Company began paying only the contractually required royalties on the “textbook” portion of the sales price and not the “online” portion.

The case is Flynn et al. v. McGraw Hill LLC, Case No. 1:21-cv-00614, in the U.S. District Court for the Southern District of New York.

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