Jasmine-Jade Enterprises, parent company of Ellora’s Cave, Cerridwen Press and The Lotus Circle, filed suit against Borders and distributor Baker and Taylor for breach of contract and fraud. The issue involved has to do with books returned in violation of the bookstore chain’s contract with the publisher.
Details can be found at Publisher’s Weekly and Media Bistro. At issue is the chain’s habit of returning significant numbers of ordered books for credit.
Publishers have long complained about the policy of bookstore returns and it hits small publishers particularly hard, so it will be interesting to see how this case plays out.