California court approves Microsoft class-action settlement

The California Court of Appeal for the First District has upheld a class-action settlement against Microsoft. Plaintiffs in the suit claimed that Microsoft used its tremendous market share to overcharge customers for Windows. More than $1 billion in vouchers were awarded, but a full third of the settlement went unclaimed.

The case was originally filed in February 1999 and plaintiffs claimed that Microsoft overcharge buyers of the Windows 95 and 98 operating systems by as much as $40 a copy. Microsoft and the plaintiffs hashed out a settlement that included vouchers for $5 to $29 dollars that could be redeemed for software and hardware.

A third of the unclaimed voucher funds are to be returned to Microsoft, while two-thirds will go to California schools. Charles Q. Jakob, one of the plaintiffs in the case, objected to the settlement and wants the unclaimed funds to be distributed to the plaintiffs. The court disagreed and dismissed Jakob’s challenge.