It says that Doubleday will issue refunds to those who bought the book directly from them. Will they be taking the entire blow, or will Frey have to cough up his royalties for those books?
ahhh...the underbelly of the royalty statement.
Every royalty account has a despicable little line that says "reserves against returns" and the publisher DEDUCTS a tidy sum against the far off day that a book comes back. They do this forever.
Example: your book sold 100 copies at $20.00 each and your royalty rate is 10%.
100 x 20 x 10% = (Miss Snark takes off her red and white striped stockings to count, and calls KY over for extra digits) $200.00 is owed to you.
Then the line : Reserves against returns 10% = and $20.00 is deducted. You get $180.
Well, Miss Snark gets it, deducts her whopping commission of $27 and sends you $153.00
Don't spend it all in one place.
So, ya, James Frey is going to get nailed for returns.
But, so does everyone.