Penguin-Simon Trial to Proceed Without `Efficiencies’ Data

Penguin Random House LLC must refrain from using certain economic data to justify its $2.18 billion acquisition of Simon & Schuster Inc., after a federal judge threw out defense testimony in the trial over the deal.

US District Judge Florence Pan excluded defendants’ so-called efficiencies evidence from the case, granting a motion from the Department of Justice.

The publishers have argued that the merger would increase efficiencies, or cost-saving moves designed to reduce redundancies and free up resources. Those efficiencies could translate into over $100 million in additional author compensation by 2025, according to the defense’s court filings.

But the ...