Class-actions against Microsoft are dismissed

By Matt Whipp

Posted on 15 Apr 2003 at 12:46

US District Judge J. Frederick Motz has refused to give class-action to more than 60 suits brought by consumers against Microsoft for over-pricing its products.

Motz argued in an opinion set out yesterday that a class-action would not adequately represent all the plaintiffs, although he did allow a small group of consumers that had brought just the operating system from Microsoft's online shop to pursue their case.

'I believe I would be creating a conflict of interest - or at least an apparent conflict of interest - between the relatively small monetary damages class I am certifying and the extremely large nationwide injunctive class whose additional certification plaintiffs seek,' states Motz.

He was concerned that those seeking small amounts of compensation would be more likely to agree a compromise with Microsoft, but that if they were among plaintiffs looking for more substantial damages in a class-action suit, then their options to compromise would be lost.

Other suits were dismissed due to the Illinois Brick rule that means consumers that bought Microsoft products through third-parties (for example, a computer with Windows pre-installed) cannot seek damages on federal antitrust claims against Microsoft.

This rule does not apply in California, and Microsoft agreed a $1.1bn (ï684m) settlement in January to offer vouchers to plaintiffs seeking damages in a class-action lawsuit alleging over-charging.

However, legal experts predicted at the time that such cases would be more difficult to pursue in the 16 other state courts where similar suits are pending.

Motz also happens to be the judge presiding over Sun's suit against Microsoft for its implementation of Java.

See also:

Microsoft settles ï684m antitrust suit