Microsoft Resolves Iowa Class Action Lawsuit

Published: February 21, 2007

by Alex Woodie

As a class action lawsuit against Microsoft went to trial in December and continued into January, the lead attorney representing scores of Iowans claimed she had evidence that showed Microsoft violated the Department of Justice's landmark 2002 decision by hiding crucial APIs. Now it looks as though we may never get to hear that evidence, as Microsoft and the plaintiffs agreed to settle the lawsuit before the disagreement was adjudicated in court.

Like the citizens in many other states, a group of people in Iowa filed a class action lawsuit against Microsoft claiming the software giant charged them $300 million too much for DOS, Windows, Office, and other software between 1994 and 2006. While most states settled their differences with Microsoft, Iowa forged on with a trial.

Last month, Roxanne Conlin, the plaintiff's attorney, asked the judge in the case for permission to disclose proof that Microsoft hid the APIs to the Justice Department, according to a story in the Associated Press. The Justice Department agreed to review the information.

With last week's out-of-court settlement between the two parties, the public may never know if there was any substance to Conlin's accusation. Microsoft also avoided putting CEO Steve Ballmer and Chairman Bill Gates on the witness stand, as the company said it would do.

While Microsoft has obviously agreed to pay the Iowa group some amount, exact terms of the settlement were not disclosed. Microsoft says details for making claims will be announced in April.

Children, schools, and everybody who uses Microsoft's innovative products are the ones who benefit from this out-of-court settlement, according to Rich Wallis, a lawyer for Microsoft.

"One of the best aspects of resolving this case is that we can provide much needed resources to underprivileged schools," Wallis said. "We're happy to have this matter behind us so we can focus on the future and build the next generation of products and innovations that enrich the lives of people around the world."

Conlin released this statement: "We are confident that the settlement is in the best interests of all members of the class and we are deeply grateful for the quality and fairness of the judicial process in Iowa."

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