PORTLAND (AP) – A federal judge has approved a settlement of a lawsuit filed on behalf of millions of record club members who alleged they had been overcharged in a price-fixing conspiracy.

Under the settlement signed Wednesday by U.S. District Judge D. Brock Hornby, the CD buyers will receive vouchers to give them 75 percent discounts for new compact discs, which they will receive with no shipping or handling charges.

Some members will be eligible for as many as three discounts, said an attorney for the plaintiffs, Michael Jaffe.

Hornby last July approved a $143 million settlement of a related lawsuit that accused major record companies and large music retailers of conspiring to set minimum music prices.

Under the earlier settlement, 3.5 million people are to receive checks for $12.60.

“We’re hopeful the checks will be distributed as soon as possible,” said Portland attorney Fred Frawley, who is representing a number of private plaintiffs in the case.

After attorneys’ fees, the actual cash payout is expected to be around $44 million. In addition, $75.7 million is to be distributed in the form of 5.6 million music CDs sent to libraries and schools throughout the nation.

The lawsuit, which was signed by the attorneys general of 43 states and territories and consolidated in Portland in October 2000, accused major record labels and large music retailers facing competition from discount retailers like Target and Wal-Mart of conspiring to set minimum music prices.

Defendants included Sony Music Entertainment, EMI Music Distribution, Warner-Elektra-Atlantic Corp., Universal Music Group and Bertelsmann Music Group, as well as retailers Tower Records, Musicland Stores and Transworld Entertainment.

In agreeing to the settlement, they denied any wrongdoing.

Roughly 3.5 million U.S. residents who purchased music between 1995 and 2000 registered for claims in the 1996 price-fixing suit.

The settlement also prohibits major music distributors from tying cooperative advertising efforts to retailers’ advertised prices.

AP-ES-12-04-03 1758EST