New reports are circulating that the Department of Justice’s antitrust investigation into Apple and publishers over eBook pricing may turn into a lawsuit. According to Bloomberg, Apple and Macmillan are preparing themselves for this outcome.

Here is more from Bloomberg: “Apple and Macmillan, which have refused to engage in settlement talks with the Justice Department, deny they colluded to raise prices for digital books, the people said. In an antitrust case, they will argue that pricing agreements between Apple and publishers enhanced competition in the e-book industry, which was dominated by Amazon.com Inc.”

Simon & Schuster, Hachette, Penguin, and HarperCollins Publishers are also being investigated for the lawsuit though reports are circulating that these publishers are inclined to settle the case out of court.