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AOL Agrees to More Refunds in Class-Action Lawsuit

AOL subscribers who were locked out in February and March are eligible for extra refund.

By Mindy Charski, PCWorld   

The agreement, reached Thursday, allows AOL members to get a cash refund or a free month%squots service, in addition to compensation of up to $40 from an earlier agreement with attorneys general in 36 states.

AOL spokesperson Tricia Primrose denied that the new offer is an acknowledgment that the $350 million network overhaul intended to resolve recent network overloading has been unsuccessful.

%dquotWe%squotve made such substantial progress in increasing the number of daily sessions [to 12.5 million from 10 million],%dquot she said. %dquotMore than anything this settlement closes the chapter on the access issue.%dquot

Subscribers who logged on for 2 to 8 hours in February or March are eligible to receive $9.47, about half the flat-rate monthly fee of $19.95. Those who logged on from 8 to 15 hours will receive about $5. Members who used the service for more than 15 hours, but who had problems getting logged on, can get a free month of AOL service instead of a cash refund.

Within two weeks AOL will post information about requesting refunds, Primrose said. No refunds will be sent, however, until final details of the settlement are determined at a hearing, which has not yet been scheduled, Primrose said.