The class action lawsuit was filed in August 2004 by the law firm of Townsend and Townsend and Crew -- counsel for the City and County of San Francisco and the City of Los Angeles, and the counties of Santa Clara, San Mateo, Los Angeles and Contra Costa. The cities and counties alleged that Microsoft engaged in anticompetitive conduct and used its market power to overcharge members of the government class. Microsoft denies these claims, and maintains that it developed and sold high quality and innovative software at fair and reasonable prices.
The $70 million in settlement benefits will be divided among the state of California and local government entities that can use them to obtain cash refunds upon the purchase of any brand of qualifying computer hardware and software, according to a release by Townsend and Townsend and Crew.
Richard L. Grossman, attorney for the government plaintiffs, said "This antitrust settlement will provide state and local governments with a fabulous opportunity to obtain their choice of a wide variety of computer products sold by any competitor in the market."
"We value our relationship with these cities and counties and are pleased to reach a settlement that allows us all to focus on the future," said Tom Burt, corporate vice president and deputy general counsel for Microsoft.
The named plaintiffs have approved the basic terms of the settlement and the parties are negotiating a final settlement agreement to be presented to the court for approval in City and County of San Francisco v. Microsoft Corporation. The case is pending before the Honorable J. Frederick Motz in the United States District Court for the District of Maryland.
