June 20, 2002
AOL has agreed to pay $15.5 million to settle a consumer class-action lawsuit that claimed the company's version 5.0 software made it impossible for customers to access other Internet service providers.
The settlement, which must be approved by a federal judge in Miami, ends a lengthy proceeding that began in 1999, when AOL released version 5.0. Users said that after installing the program they were unable to log on to other ISPs and some said the software made their systems unstable.
AOL noted that the settlement is not an admission of wrongdoing and a spokesman said the company agreed to it to avoid protracted litigation. Attorney A.J. De Bartolomeo, who represented the plaintiffs, called the settlement "reasonable and equitable."
Under the settlement, about $8.8 million will be paid to consumers, with the rest going to pay fees and court costs. Payouts to consumers will be graduated and will be based on how much evidence they can provide about their difficulties with the AOL software. Under terms of the settlement, the maximum payout to any individual will be $250.
Consumers who believe they should be included in the settlement should go to www.50softwaresettlement.com. The deadline for filing claims is Sept. 6, 2002.
