After receiving letters threatening legal action from the Versace family, Little, Brown earlier this month canceled Christopher Mason's Undressed: The Life of Gianni Versace, an unauthorized biography of the late designer and his fashion empire -- despite the fact that the planned July release was already legally vetted and was in galley form. With the move, Little, Brown walks away from at least a $500,000 investment; Mason was allowed to keep his full advance, which had been reported at that level.

According to Little, Brown spokesperson Beth Davey's official statement, "We accepted the manuscript in February. In mid-March, we received letters threatening legal action. We subsequently heard from third parties refuting statements in the book. In response to issues that had been raised, Christopher wanted to rework the book, so by mutual agreement, he withdrew it."'

Another factor in the decision, said Davey, was that the book -- which drew criticism when it was signed up on July 15, 1997, the day Gianni Versace was murdered by serial killer Andrew Cunanan -- had been delayed twice before. A further delay, Davey explained, would make it even more difficult for the Little, Brown sales force to sell the book.

Bookstores, however, appeared to have made healthy orders of the book this go-round. Spokesperson Debra Williams said Barnes &Noble had taken a "very decent stand" on the title, and while she wouldn't question the publishing decision, noted that "we're disappointed not to be able to offer it."

Mason's agent, Todd Shuster, told PW that for Mason to receive his full advance, which occurred before the book's cancellation, the book had to pass an extensive legal review. The author, Shuster said, had "ample documentation" to support the statements in his book.

In an article in the New York Times, Versace spokesperson Ed Filapowski, who could not be reached for further comment by PW, denied that the family or its representatives had made any threats to sources that would have later caused them to refute statements in the book.

At the present time, Shuster is not actively shopping the book to a new publisher. But Barricade Books publisher Lyle Stuart -- despite having filed for bankruptcy because of his own costly legal battles with casino magnate Steve Wynn -- told the New York Daily News that he might be interested in publishing Mason's book. "We do a lot of books like this, not necessarily because we like them all, but because we believe in resisting pressure groups and powerful individuals," he asserted. Stuart had not seen the book or been in contact with Shuster at press time.

Carol Publishing Group publisher Steven Schragis provided the unfortunately more typical publisher comment: "Maybe five years ago I wouldn't have said this, but given the cost of litigation, even if in the end you don't have to pay any damages, it's sometimes wiser to just cut your losses."