Penguin Books has pulled its e-titles from publisher Overdrive and from library lending programs.
Penguin (and other companies that have pulled their support for library lending) claim that putting their books out there for free to the public encourages piracy and profit loss. I can see their point. Library's have always promoted piracy. This past year alone I can not count how many times I caught little old ladies hunched over the copy machine with a copy of The Help. You have to watch those crazy ladies.
Penguin Stops Selling e-Books to Libraries - Publishers Weekly