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Consumers get $180 million in Microsoft settlement, lawyers get $75 million

Microsoft has settled its long-running antitrust case in Iowa. The lawsuit, which was initially filed in 2000, claimed that Microsoft was involved in anticompetitive business practices which in turn resulted in higher prices for consumers.

The lead plaintiffs in the case, Des Moines lawyer Roxanne Conlin and Minneapolis lawyer Richard Hagstrom will receive $75 million in legal fee and expenses as a result of the settlement -- a record for the state of Iowa.

The $75 million in fees represent a bill rate of $575 an hour for each of the 150 lawyers, clerks and paralegals involved in the case. Over a seven year period, 117,000 hours were logged in relation to the case. The individual rate for Conlin and Hagstrom works out to $1,072 dollars per hour. The payout for the two lawyers also includes a 43 percent risk premium which was approved by a Polk County district judge.

While the lawyers will receive $75 million, Iowans will receive $179.95 million -- $330 million was originally requested. Microsoft will dish out $10, $16, $25 and $29 respectively for Word/Works/Home Essential, Windows/DOS, Excel and Office. Individual consumers can claim up to $200 without a proof of purchase, however, any amount exceeding $200 must be backed with supporting documentation.

Iowa consumers will receive their settlements in checks from Microsoft while businesses and government bodies will receive pay vouchers.

Some Iowans aren't happy with the settlements they are receiving in relation to the payout reserved for lawyer fees. "How in the name of all that is sacred can you even imagine that to be equitable?" inquired Parkersburg resident Betty Klingenbord. "I also do not like how this makes Iowa look. Where will these lawsuits end?"

The settlement covers Iowans who purchased Microsoft software between May 18, 1994 and June 30, 2006. Customers who wish to receive their reimbursements from Microsoft must do so before the December 14 deadline.



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RE: WTF?
By rdeegvainl on 9/4/2007 11:08:57 AM , Rating: 2
I also agree with you.
"Free market how ever doesn't necessitate right or wrong."
I think though it is a great tool to inspire competition and growth, that it can be unfairly abused and needs some regulation.
And thank you for actually rereading my comment, I'm glad I have replay value LOL.


RE: WTF?
By Munkles on 9/4/2007 11:12:41 AM , Rating: 3
I will admit, I had a nice long rebuttal all typed out and then I previewed to check for typo's and realized what you WERE saying as opposed to what I had understood, and I felt like a total douche.

Nice to know not everyone on the internet is just gunning for a fight, some are just looking for intelligent discourse.


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