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Random House, a division of the privately held media conglomerate Bertelsmann AG, is offering compensation to any reader claiming to be "duped" by James Frey's memoir, A Million Little Pieces.

Frey's story was a scandal that broke in January of last year. The author's ostensibly non-fiction book described, in excruciating detail, his miserable existence within an alcohol and drug-addled haze. Toe-curling details include a three-month stint in jail, an anesthesia-free trip to the dentist, and time in rehab.

Published in April 2003, the book hit the best-seller list more than two years later, after Oprah Winfrey named it her September 2005 book club selection. But Frey's ride of success wasn't long; in January 2006, it was revealed that the "memoir" contained outright fabrications. (Essentially, Frey is the Milli Vanilli of modern American literature). Readers who bought A Million Little Pieces before January 26, 2006 (around the time Frey confessed that his penned story wasn't entirely true) are now entitled to a refund from the publisher.

Those who bought the hardcover copy will receive as much as $23.95; ones who bought the book in paperback will get a maximum refund of $14.95. The entire program is expected to cost Random House $2.35 million. The publisher's decision, approved by a Manhattan Federal Judge, is expected to resolve several lawsuits already filed across the country by disgruntled readers.

While Frey's fabrications are certainly reprehensible, the fact remains that A Million Little Pieces reportedly helped countless readers who were struggling with their own addictions. I can't help but wonder how Frey's real story might have gone if he'd pitched his book as one "inspired by true events" rather than a completely factual "memoir."

Beth Gaston Moon is an analyst at Schaeffer's Investment Research.

Random House offers refund for "A Million Little Pieces" originally appeared on BloggingStocks on Fri, 18 May 2007 11:45:00 EST. Please see our terms for use of feeds.

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