PORTLAND (AP) – Millions of music buyers will receive a check for about $12.60 in the mail if a settlement of a price-fixing lawsuit wins court approval Thursday.

U.S. District Judge D. Brock Hornby will hold a hearing to determine whether the $44 million settlement is fair.

Roughly 3.5 million U.S. residents who purchased music between 1995 and 2000 registered for claims in the price-fixing suit against major record labels and large music retailers.

Hornby also will determine whether registrants who failed to sign penalty of perjury documents will be allowed to share in the settlement and whether petitions of Canadian residents who failed to note that they bought music in the United States will be thrown out, said Maine Assistant Attorney General John Brautigam.

The lawsuit, signed by the attorneys general of 40 states and consolidated in Portland, accuses major record labels and large music retailers facing competition from discount retailers like Target and Wal-Mart of conspiring to set minimum music prices.

The defendants – 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 – have denied any wrongdoing.

Beyond the $44 million in cash, the deal’s terms would provide 5.5 million CDs valued at $75.7 million to public institutions and nonprofit organizations.

It also would prohibit major music distributors from tying cooperative advertising efforts to retailers’ advertised prices.

The settlement money has been collected from the defendants and is currenlty in escrow. Payments should be mailed out within weeks of the settlement’s approval.

AP-ES-05-21-03 1358EDT