Liability, awards and settlements

3.5, Microsoft class action settlement

US: Microsoft Corporation reached a tentative $70mn settlement resolving antitrust claims brought by certain California government entities. The class-action suit was filed in August 2004 by the City and County of San Francisco and the City of Los Angeles, as well as the counties of Santa Clara, San Mateo, Los Angeles and Contra Costa. The suit claimed that Microsoft engaged in anticompetitive conduct and “used its market power to overcharge members of the government class.” Microsoft denies the suit’s claims. The $70mn will be divided among the State of California and the government entities. Those entities can use the settlement benefits to get cash refunds “upon the purchase of any brand of qualifying computer hardware and software.” A Microsoft spokesperson said that Microsoft valued its relationship with the cities and counties and were pleased to reach a settlement that allowed everybody involved to focus on the future.