The Floppy Disk Follies

When Joe Lalumia uses one of his company's ten Toshiba laptops, he gives it a good workout--often running full-blown PowerPoint presentations, saving digital images to his floppy drive, and holding NetMeeting sessions at the same time.

And in the years since he has owned his Toshiba notebooks, he hasn't suffered any data loss.

But a class-action lawsuit filed in Beaumont, Texas, says a flaw in the floppy drive controller on chips in Toshiba notebooks, given the right circumstances, might lead to data loss.

"I've never had any problems with my Toshibas and I never knew there was a problem until someone told me about the lawsuit," says Lalumia, president of M Group, a logistic software designer in Temple, Texas.

Neither plaintiffs on the case nor any Toshiba users have reported losing data as a result of the flawed chip, but the company plans to settle out of court for $2.1 billion.

Final details of the settlement will not be released until next Wednesday, but it will include funds for compensating most people who have purchased a Toshiba notebook since 1987.

While Toshiba admits no fault in the case and says it did not sell any defective code to other vendors, as of November 8 the company will begin manufacturing notebooks for sale in the U.S. equipped with new floppy drive controllers.

Notebook Buyers Unite

If you bought a Toshiba notebook between 1987 and now, you should contact the company after November 10 to determine if your notebook is covered by the settlement. In general, assume your notebook is included; only the Libretto mini notebooks are excluded. No desktop systems or servers are part of the claim.

Update (11/10/99): As part of the settlement, Toshiba is extending compensation to all customers who bought Toshiba notebooks manufactured after January 1, 1985. --Editors

Your entitlement depends on when you bought the notebook and if it's under warranty. If the warranty ran out before March 5, 1999, you will get a software patch to fix the bug and a $100 coupon for Toshiba products and accessories. The coupons will expire at a time to be specified later.

If the notebook was under warranty on or after March 5, 1999, you get the patch and a $225 coupon for Toshiba products. Alternatively you can opt for a $200 coupon and a hardware fix or receive a coupon for a PCMCIA floppy drive.

None of the options requires proof of purchase for redemption, but only one award is available per serial number.

If you bought the computer after March 5, 1998, and have proof of purchase, you can get a cash rebate from the settlement fund in addition to the software patch or hardware fix and coupons. The cash amount is yet to be determined.

With many details still being worked out, additional information won't be available until November 10. To claim your compensation, beginning on that day you can call 888/353-8138 or visit Toshiba's home page.