Microsoft Settles Another State Suit

Microsoft has settled a class-action lawsuit with customers in Massachusetts for as much as $34 million, the company has announced.

Monopoly Matters

The lawsuit accused Microsoft of using its desktop monopoly to overcharge customers. As in other class-action settlements settled recently by Microsoft, Massachusetts customers will be able to claim vouchers to use for buying software or hardware. Half of any unclaimed money will go to needy schools for new software or hardware.

The Massachusetts and other class-action lawsuits stemmed from a federal court finding that Microsoft had abused its monopoly status in the desktop operating systems market to the detriment of consumers. A settlement in the federal case was approved late 2002.

The state of Massachusetts has a separate antitrust claim pending against Microsoft. Massachusetts is the lone state still appealing the federal court antitrust settlement, and the class-action settlement does not affect that case.

States Step Up

Microsoft announced a similar class-action settlement with Arizona on Monday. Microsoft has now reached settlements in consumer class action lawsuits in 13 states: Montana, Florida, Kansas, Tennessee, West Virginia, Minnesota, California, Washington, D.C., North Carolina, North Dakota, South Dakota, Arizona, and Massachusetts.

The Massachusetts settlement received preliminary approval Monday from Judge Judith Fabricant of the Massachusetts Superior Court. Under the settlement, Massachusetts residents who purchased most Microsoft software between January 3, 1996, and December 31, 2002, will be eligible for the vouchers.