Toshiba Will Pay Notebook Owners for Flawed Drives

How much is your data worth? Well, if you're one of the millions of people who bought a Toshiba notebook in the last 14 years, the answer could be as much as $668 in cash and coupons. The payments, which could total $2 billion or more, will settle a class-action suit claiming that Toshiba sold notebooks with defective floppy drives.

The plaintiffs, two Texas men, allege in their suit that Toshiba knowingly used a flawed controller chip that could cause data loss. Their attorneys are also suing a number of other PC makers that used the same controller, including Compaq, Hewlett-Packard, and NEC. Toshiba, which declined to comment for this article, acknowledges that a potential problem exists, but denies wrongdoing.

"The industry wants to believe [the floppy drive is] not a real problem," says a spokesperson for Wayne Reaud, an attorney for one of the plaintiffs. "It is a real problem and it poses real dangers. You can no longer trust the data entering and leaving your machine."

Playing it Safe

While a problem may exist, neither Reaud nor analysts contacted by PC World have reported seeing a case outside the lab in which the flaw in the controller chip actually led to lost data. Martin Reynolds, chief technology analyst for GartnerGroup Dataquest, says that theoretically the flaw could appear when a user stresses the system by running several demanding programs (like video) while saving data to a floppy. Randy Giusto, an analyst for International Data Corporation, says the suit has little merit, but it costs vendors less to settle.

Though Toshiba maintains that its floppy controllers don't lose data under normal conditions, Toshiba will provide a free patch, coupons for future Toshiba products, and even a cash rebate to certain customers. If you bought a Toshiba notebook made since January 1, 1985, chances are you'll benefit from the settlement.

The company's Libretto mininotebooks, which lack a floppy drive, as well as its desktop systems and servers, are excluded from the claim.

The older your notebook, the lower the remuneration. If your laptop's warranty expired before March 5, 1999, you are entitled to a software patch to fix the bug and a $100 coupon for Toshiba products. If the notebook was under warranty on or after March 5, 1999, you can choose from the patch and a $225 coupon for Toshiba products, a $200 coupon and a hardware fix, or a coupon for a PC Card floppy drive. These options don't require proof of purchase. One award is available per notebook serial number.

If you do have a proof of purchase and you bought the computer after March 5, 1998, you qualify for a cash rebate of $210 to $443, plus coupons, and either the software patch or hardware fix. Users who bought their notebooks in March 1998 receive the lesser amount; those who bought in December 1999 get the maximum. Claims must be filed by June 3, 2000.

Related Suits

Meanwhile, other plaintiffs have filed similar suits against Compaq, EMachines, HP, and NEC. Compaq will fight the charges, said company spokesperson Alan Hodel. An EMachines spokesperson told us that the company has been served with a suit as well, but notes that EMachines didn't begin shipping PCs until October 1998 and didn't ship laptops until November 1999. At press time, NEC spokesperson Ron Fuchs said that the company had received a courtesy copy of the suit, but no formal papers yet. Hewlett-Packard declined to comment.

So what's a Toshiba owner to do? Before the lawsuit, PC World had not heard any complaints about the allegedly defective floppy drives. But why take chances? To make a claim, call 888/353-8138 or visit Toshiba's FDC Settlement Web site.