Christie’s, Sotheby’s Reportedly Reach Tentative Deal to Settle Suit

Sotheby’s Holdings Inc. and Christie’s International reached a tentative agreement to pay $512 million to settle a private class-action suit over price fixing, the New York Times reported, citing unidentified lawyers.

The two biggest auction houses would each pay $256 million to end claims brought by more than 120,000 buyers and sellers, the paper said, citing the lawyers. The tentative civil settlement might include payments from former Sotheby’s Chairman A. Alfred Taubman and former Sotheby’s Chief Executive Diana Brooks in addition to the payments from the auction houses, the paper said.

Justice Department prosecutors have been conducting a three-year criminal investigation into whether Sotheby’s and Christie’s colluded on prices. Taubman and Brooks both resigned in February and are being investigated by the government.

Closely held Christie’s agreed in January to cooperate with the U.S. government in exchange for conditional immunity in the criminal investigation. Together, London-based Christie’s and New York-based Sotheby’s control more than 90% of the $5-billion-a-year art auction market.

Sotheby’s spokesman Matthew Weigman said the company has no comment on the newspaper’s report. Sotheby’s lawyer, Greg Danilow of Weil, Gotshal & Manges, also declined to comment. Christie’s lawyer, Michael Weiner of Skadden, Arps, Slate, Meagher & Flom, couldn’t immediately be reached to comment.

Boies, Schiller & Flexner--the law firm of David Boies, lead trial lawyer in the Justice Department’s antitrust suit against Microsoft Corp.--is leading the class-action suit against the auction houses.

Sotheby’s shares rose 38 cents to close at $20.31 on New York Stock Exchange.