Class-action costs Toshiba $1 billion

Toshiba has agreed to pay $1 billion to settle a lawsuit over its notebook computers.

The class-action suit filed earlier this year by two U.S. owners of Toshiba notebook PCs claimed that a condition in the micro-code for the floppy disk controller may cause data in a floppy disk to be lost or corrupted.

Under the settlement, Toshiba will incorporate new floppy disk controllers in PCs for sale in the United States and provide eligible owners with coupons ranging from $100 to $225.

Moody's Investors Service quickly responded to the news by cutting the Japanese company's long- and short-term credit ratings and put Toshiba on review for a possible further downgrade.

The full story can be found online at www.techweb.com.