Microsoft Settles 6 Class Action Suits
Tue October 28, 2003 04:25 PM ET
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By Reed Stevenson and Peter Kaplan
SEATTLE/WASHINGTON (Reuters) - Microsoft Corp., the world's largest software maker, on Tuesday agreed to pay $200 million to settle class-action lawsuits filed in several U.S. states for overcharging customers for software.
Under the settlements, eligible buyers of Microsoft's (MSFT.O: Quote, Profile, Research) products will get vouchers that can be used to buy computer hardware or software. Half of any unclaimed vouchers will be used to buy computer equipment or software for schools.
Agreements were reached in Kansas, the District of Columbia, North Carolina, North Dakota, South Dakota and Tennessee.
The class actions claimed Microsoft used its Windows monopoly to thwart competition and overcharge customers for its software products.
Microsoft closed up 29 cents to $27.20.
Tuesday's announcement brings the total number of consumer class action settlements over the past year to 10, Microsoft senior vice president and general counsel Brad Smith told reporters during a teleconference. The settlements are worth a total of $1.55 billion, Smith said.
Microsoft, which has said that it will hold on to its growing cash pile until the threat of further litigation subsides, had on hand of $51.6 billion as of September 30.
Class action lawsuits are still pending in five states, Arizona, Iowa, Minnesota, New Mexico and Wisconsin, Microsoft said.
The settlements announced on Tuesday are the latest in a string Microsoft has reached in recent years as it tries to clear up legal problems stemming from its antitrust battle with the government.
In January, Microsoft settled the largest claim against it in a state class-action case, agreeing to pay up to $1.1 billion to 13 million eligible California businesses and consumers.
In April, the company said it would pay as much as $202 million to settle a class-action lawsuit brought by consumers in Florida.
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