Microsoft Settles Minnesota Case for $240 Million

July 1, 2004

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Microsoft will pay more than $240 million to settle a class-action lawsuit brought by Minnesota computer users who claimed they were overcharged. The settlement includes $174.5 million in computer equipment vouchers for consumers.

The suit alleged that Microsoft violated state antitrust law by overcharging for its Windows operating system and its Excel and Word programs. Judge Bruce Peterson of the Hennepin County District Court granted preliminary approval of the settlement.

Consumers will be able to use the vouchers to buy new desktop computers, laptops, tablet computers, printers, scanners, monitors, keyboards, pointing devices and software from any manufacturer, not just Microsoft.

Additionally, Microsoft will provide a $2.5 million cash payment and $2.5 million in general purpose vouchers to the University of Minnesota's Institute of Technology for technology purposes. Microsoft will also provide $2.5 million in cash to the Minnesota Legal Aid Society.

The case, the first and only consumer class action case against Microsoft to go to trial, alleges that Microsoft violated Minnesota's antitrust laws and overcharged consumers for Microsoft software. The case settled in its seventh week of trial.

"This settlement delivers substantial benefits for Minnesotans. The major beneficiaries of this agreement are consumers and Minnesota public schools," said Richard Hagstrom, the lead trial counsel.

More than one million Minnesota consumers and businesses will be eligible to collect large refunds on past purchases of Microsoft operating systems and applications software. The claims notification to the one million class members will begin July 6.

At that time, consumers and businesses can begin collecting on each copy of the Microsoft software that was purchased separately by consumers or purchased preinstalled on a computer between May 18, 1994 and March 17, 2003. The amount per copy is $15 for Windows or MS-DOS; $23 for Microsoft Excel; $23 for Microsoft Office; and $9 for Microsoft Word, Works and Home Essential software.

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