The state of Washington has filed suit against computer seller Microworkz, claiming it violated consumer protection laws.

The state attorney general's office says Microworkz.com failed to deliver computer equipment as ordered, honor warranties, issue refunds, and respond to consumer inquiries and complaints.

The Seattle-area company made national headlines for offering sub-$300 PCs, but allegedly continued to sell computers after it was unable to keep up with deliveries.

Microworkz.com chairman Richard Latman said the company expects to stay in business and hopes to reach a settlement.

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