"They take a lot of time, so we wouldn't want to do this," he said. "It's a distraction from what we're really here to do." He claims that the law suit was filed to protect customers.

Kaplan and Princeton Review are the two largest educational test preparation companies in the U.S., and law suits between the two are nothing new.

Princeton Review has sued Kaplan several times in the 1990s. Most suits between them center around false advertising, and all of them usually get settled outside of court, Basili said.

Regardless of Kaplan's motives for filing this suit, Princeton Review said it is happy with the settlement reached.

"I'm feeling great," Cohen said. "The settlement puts this silly lawsuit behind us. The settlement did not involve any product recall or liability. We did not intentionally lie to customers-we made an honest mistake, so we're fixing it.

"We are holding shipment pending the new book cover and software packaging, because that's the right thing to do-not because the court told us to do that," he added.

Kaplan's book revenue is expected to double to $8 million this year. At the same time, Princeton Review is convinced that it will not lose customers due to this lawsuit.

"Honestly, I don't expect our sales to change at all," Cohen said. "People buy Princeton Review books or software because they recognize that Princeton Review is the leader in the test preparation industry. Today's decision does not change that. There's a terrific amount of publicity and I think that that actually help sales.