Plaintiff States sought damages and injunctive relief, alleging that Keds conspired with its dealers to set forth minimum retail prices for which the dealers must sell their products. The Plaintiff States further alleged that Keds coerced compliance by threatening to terminate dealers or delay shipments for non-compliance. In response, many dealers complied with Keds? pricing
policy, thus establishing a conspiracy. The parties reached settlement terms. Keds was required to reinstate non-complying dealers and was enjoined for a five year period from attempting to enter any arrangement to fix, raise or lower prices for which their products were sold. In addition, Keds was required to inform dealers that they do not have to conform to Keds suggested retail prices, but that they are free to determine the price at which they advertise and sell Keds? products. Further, the parties agreed to a settlement sum of $7.2 million in monetary damage. $1.5 million of the settlement sum was used in administering the settlement, costs of the investigation and attorneys fees. The remaining $5.7 million was distributed cy pres to fund women?s programs such as abused women?s shelters.