Toshiba Offers Cash, Coupons in Suit

If you've bought a Toshiba notebook since 1985, you may be entitled to as much as $443 in cash, plus coupons and a bug fix, as settlement of a class-action suit against the vendor.

Toshiba detailed on Monday how notebook owners can file a claim, and how much money the company will pay to consumers because of faulty floppy disk controllers in virtually all notebooks shipped since 1985 (except the now-discontinued Libretto line). Meanwhile, the same plaintiffs are filing similar suits against other vendors, including Compaq, eMachines, Hewlett-Packard, and Packard Bell NEC.

The plaintiffs in the case allege a flaw in the microcode of the floppy disk controller can cause undetected data loss or corruption. Industry analysts say the problem stems from the original NEC chip that Toshiba used as a basis for its own floppy disk controller. NEC later updated the chip to correct the error, but Toshiba did not.

In the settlement papers, Toshiba admits its laptops contain the floppy disk controller, but deny that any data loss will occur under "normal" use. In fact, even the plantiffs do not claim anyone has actually lost data because of this particular flaw.

"We're trying to make sure that the defective products get removed from the market," according to a spokesperson for Wayne Reaud, attorney for the plaintiffs. The suit was filed in Beaumont, Texas.

What's in It for You?

Generally, the older the notebook, the smaller the payoff. You can get cash only if you bought your notebook after March 5, 1998; other Toshiba customers (who purchased notebooks as early as 1985) can get coupons for other Toshiba products. Claims must be filed by June 3, 2000.

To get any cash rebate, you must have proof of purchase. The other offers do not require proof of purchase for redemption, but only one award is available per notebook serial number.

The amount of rebate varies according to when the notebook was purchased.

If your notebook was under warranty on or after March 5, 1999, you can get a software patch and $225 coupon. Or, you can accept a $200 coupon and a hardware fix, or a PC Card floppy drive.

If the warranty on your notebook expired before March 5, 1999, you're entitled to a software patch to fix the bug, and a $100 coupon for Toshiba products and accessories.

If you bought a laptop in March 1998, you get $210.

If you buy one of the affected notebooks in December 1999, while it's still under warranty, you can get a $443 rebate.

Toshiba has posted the customer rebate information and settlement terms on its FDC Settlement Web page, or you can call 888-353-8138 for more information. Toshiba also published informational ads in two dozen newspapers around the country.