We have the same problem and have not yet found a solution. We don't want to punish DD for reading either, but what happens if we don't do anything is she stays up *way late* every night and then is tired and crabby in school, which at least sometimes contributes to inappropriate behavior. You can see it getting worse during the course of the week, too, so that by Friday she is really wiped out (even yawning at breakfast), unless we really get on her to stop and turn the lights out during the week. So we have her go to bed about 9, and it's supposed to be lights out by 9:30 so she can get to sleep. But she has snuck a flashlight up on many occasions. I have more sympathy than DH does, because I used to do the same thing when I was a kid
Usually if we catch her we just take some time off her video game/iPad allotment for the next day. But we don't like that she feels moved to deceive, and this has only partially worked.
She has a radio in her room and is allowed to listen to the classical music station at low volume--this seems to help sometimes with getting her to sleep. But when we discuss the whole getting to sleep issue she usually says that her mind is racing with thoughts and she couldn't get to sleep anyway--that reading actually helps. We've been trying to have her get more exercise during the day and that seems to help sometimes, but it takes a lot to wear her out and some days she has after-school stuff that takes up most of her time so we can't do that every day. So we're still looking for a solution, too. Best of luck!
