Microsoft Parties to Hold More Talks on Settlement
A federal judge in Baltimore on Tuesday asked lawyers to go back to the bargaining table one more time in a last-ditch attempt to reach an amenable settlement for more than 100 class-action suits against Microsoft Corp.
Lawyers for California plaintiffs--who were not involved in initial negotiations and who argue the proposed settlement is anticompetitive and financially inadequate--will participate in the talks.
At issue is amending a proposed settlement under which Microsoft would subsidize refurbished computers and provide new computers, software and training to more than 12,500 poorly funded schools over five years.
Microsoft and plaintiffs who favor the proposed settlement say it is a way to narrow the “digital divide” that puts poorer schools at a disadvantage because of their limited access to technology.
Opponents have said the settlement is more of a reward than a punishment, allowing Microsoft to make inroads in the education market. Lawyers for plaintiffs in California also argue that they have a stronger case than other plaintiffs because of state consumer laws.
Although Chief U.S. District Judge J. Frederick Motz said he did not want to make the attorneys do anything they didn’t want to, he said if California has something to lend to the settlement process then it should be included.
The proposed settlement has been amended once in what Microsoft said was an attempt to ensure its impartiality. Under the agreement on the table, Microsoft would subsidize refurbished Macintosh or other personal computers for eligible schools, provide free Microsoft software to the schools and give eligible schools subscriptions to Microsoft’s technical support program, TechNet, valued at $17 million.
The lawyers were scheduled to hold final discussions about amending the proposed settlement on Tuesday. Motz said if an amended settlement agreement isn’t reached within a day, he will make a decision this month about the proposal that is on the table.
“I would just like the system as a whole to have one more crack at it,” Motz said.
