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The Courts Government Microsoft The Almighty Buck News

Florida Citizens' Anti-trust Payout Dwarfed By Lawyers' 265

According to Robin "Roblimo" Miller's article on NewsForge, Florida residents are receiving word by electronic and postal mail about the likely outcome of that state's class action suit against Microsoft (last mentioned on Slashdot last September): the upshot is that Florida residents who purchased a Microsoft operating system or Microsoft Office would be eligible for a settlement payment (in vouchers) of $5-12; the lawyers involved are seeking $48 million in fees. The settlement terms have several interesting clauses; for instance, by accepting, you would be agreeing to "settle and release all claims, demands, actions, suits, and causes of action against Microsoft and/or its directors, officers, employees, attorneys, insurers or agents, whether known or unknown, asserted or unasserted, that any member of the Florida Settlement Class ever had, could have had, now has or hereafter can, shall or may have, relating in any way to ... any conduct, act or omission that was or could have been alleged in this case as the basis for any antitrust or unfair competition claims."
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Florida Citizens' Anti-trust Payout Dwarfed By Lawyers'

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  • Mirror (Score:5, Informative)

    by Anonymous Coward on Sunday August 03, 2003 @06:13PM (#6601860)
    In case the site (or routes to the site) get slashdotted, here [martin-studio.com] is a mirror to the link.
  • by AdamHaun ( 43173 ) on Sunday August 03, 2003 @06:14PM (#6601865) Journal
    The people *never* get any sort of reasonable payout from these sorts of lawsuits. I don't know why anyone even signs on. Is there a way to file suit against class action lawyers for abusing their clients?
    • by Doktor Memory ( 237313 ) on Sunday August 03, 2003 @06:17PM (#6601884) Journal
      In theory, the idea is not to enrich the individual plaintiffs, but to make the aggregate penalty high enough to get the company's notice.

      In practice, it's rarely so simple, since for a company Microsoft's size, $202 Million (which sounds like "a lot" of money to any sane person) can not only be easily written off in any year's books, but probably doesn't even amount to the aggregate interest they earned on the licensing of the products in question.
      • by msobkow ( 48369 ) on Sunday August 03, 2003 @07:22PM (#6602147) Homepage Journal

        I realize that the actual costs involved in suing a company like Microsoft can be astronomical, but for the legal firms in such a case to charge full rate for the entire effort is obscene. Their profit on such cases should be capped at something reasonable, like 5-20% of their actual costs (filing fees, supporting research, etc. and not the lawyer's time. Their time is what the percentage is to cover, not double-dipping as both an hourly employee and as a profit-sharing partner of the firm.)

        Realistically if such limits were imposed across the board, 90% of the frivolous lawsuits in court would go away. It's the leeching lawyers who often advise their clients to continue, knowing full well that they're going to take the majority of the settlement as "legal costs".

        • by RevMike ( 632002 ) <revMike@@@gmail...com> on Sunday August 03, 2003 @08:14PM (#6602419) Journal
          the legal firms in such a case to charge full rate for the entire effort is obscene. Their profit on such cases should be capped at something reasonable, like 5-20% of their actual costs (filing fees, supporting research, etc. and not the lawyer's time. Their time is what the percentage is to cover, not double-dipping as both an hourly employee and as a profit-sharing partner of the firm.)

          I have a great business deal for you.

          You give me $10,000 and 1000 hours of work over the next 2 years. If the deal doesn't work out you get nothing. But if it does work out, I'll give you between $10,500 and $12,000 back.

          Doesn't that sound great? It doesn't? Then why would you expect a lawyer to go for it? Your system means that no attorneys will take the risk, and so MS pays no penalty and the citizens of Florida don't even get their $12.

        • by kramer2718 ( 598033 ) on Monday August 04, 2003 @04:41AM (#6604275) Homepage
          Actually, what needs to happen is for higher judgements to be doled out by juries.

          What? Yes. That's right. There should be higher penalties for negligent and malicious companies who flagrantly defraud consumers and endanger employees. $200 million is nothing to Microsoft especially in vouchers. Some serious punitive damages should be doled out in such cases.

          [rant]
          I'm not so familiar with this case. $200*10^6 might be appropriate, but in cases where children are burned because of faulty gasoline canisters or Vinyl workers develope fatal cancers because of poor safety conditions, the punitive damages should dwarf the actual damages. No it is not okay that corporations continue to behave completely irresponsibly because it benefits their bottom line. Lets make responsibilty the first priority for them.
    • Is there a way to file suit against class action lawyers for abusing their clients?

      Exactly how were these people abused the laywers? None of of the plaintiffs put any money towards the expense of filing and prosecuting the case. They merely signed their names to the action.

      If they weren't satisfied with the potential payout or the lawyer's cut, they were more than free to not participate. They were also free to put hundreds of thousands of their own dollars towards their own suit.
      • by sjames ( 1099 ) on Sunday August 03, 2003 @07:23PM (#6602150) Homepage Journal

        Exactly how were these people abused the laywers?

        Well, let's see, first of all, they didn't necessarily sign on at all, they are simply potential members of the class (that is, they are believed to live in Florida and have bought something from MS between 1995 and 2002) who may or may not have even known about the suit. In other words, it's a sort of opt-out legal spam.

        One might expect a lawyer to seek just compensation for his client(s) for genuine harm done by the defendant (the fact that the 'clients' don't even get a choice until after the fact only increases that duty). Instead, either through the lawyer's incompetance or simple greed (note that the lawyers get paid in real money), they get what amounts to an advertising flyer in the guise of a court document. It's not even a really GOOD sale offer. I get better offers than that from the pizza place. MS might as well write it off as an advertising expense. What sort of settlement is THAT supposed to be?

        In other words, this is the FIRST chance they've gotten to not participate, now that it's practically over and done.

    • by rabidbat ( 141254 ) on Sunday August 03, 2003 @06:22PM (#6601908)
      One way to stop these predatory lawsuits is to require that the lawyers get paid in coupons when the class members settlement is in coupons.

      See http://overlawyered.com/archives/01/mar2.html#0316 a
      • by ihummel ( 154369 ) <ihummel@gmail. c o m> on Sunday August 03, 2003 @06:55PM (#6602044)
        But what are the lawyers going to do with $48 million dollars worth of retail coupons towards a Linux distribution purchase?
        • by Triv ( 181010 ) * on Sunday August 03, 2003 @07:23PM (#6602149) Journal

          "But what are the lawyers going to do with $48 million dollars worth of retail coupons towards a Linux distribution purchase?"

          /me takes out clue stick

          That's the point. The lawyers would never think of accepting vouchers for their plaintiffs if they were being paid the same way.

          • Someone PLEASE mod the parent up as major league insightful. I agree that lawyers should be paid commensurate with the work they put into the case. You can't expect the experience of a law degree for free. But Triv's point is right on. Why should the lawyer's get cash on the barrel, when the wronged party gets a voucher for a spare set of batteries?

            Where are my freakin' mod points when I need them?
        • But what are the lawyers going to do with $48 million dollars worth of retail coupons towards a Linux distribution purchase?

          Hey, someone's finally figured out a workable business model for open-source software!

        • But what are the lawyers going to do with $48 million dollars worth of retail coupons towards a Linux distribution purchase?

          Move up the food chain and become script kiddies?
    • by DNS-and-BIND ( 461968 ) on Sunday August 03, 2003 @06:24PM (#6601923) Homepage
      This is how the lawsuit industry works, silly. They're flush with cash from the tobacco settlement and there are dozens of firms out there right now filing class-action suits right and left. Most you don't hear about because the company settles for a few mil.
    • lawyers get money.

      apart from that these are pretty much worthless if the lawyers are willing to bite on the bait.

      anyways, how can they settle such a case even? ok i'm not from usa but this really doesn't fit in my sense of a working legal system. it's like i would get stabbed(and luckily i'd live) by a millionaire on a public place, and then the stabber would get away by just paying me? no, he should and would get charged with assault/trying of manslaughter/murder whatever the local phrase for such attack
      • by leviramsey ( 248057 ) on Sunday August 03, 2003 @06:40PM (#6601990) Journal
        anyways, how can they settle such a case even? ok i'm not from usa but this really doesn't fit in my sense of a working legal system. it's like i would get stabbed(and luckily i'd live) by a millionaire on a public place, and then the stabber would get away by just paying me? no, he should and would get charged with assault/trying of manslaughter/murder whatever the local phrase for such attack( or would this be civil vs. criminal court thingy?).

        It's a civil case, which operates under dramatically different rules than a criminal case operates under.

        Basically, once the settlement has been reached, the plaintiff(s) file a series of motions for continuance and then when the settlement is consummated, they tell the judge that they're dropping the case. This is nothing close to a verdict; indeed, settlements have little to no effect on any other cases.

        first of all, if they're willing to pay aren't they admitting that they are behaving wrongly

        Far from it. A settlement is not considered an admission of wrongdoing or liability (unless one of the terms of the settlement is that the defendant make a public proclamation of such). Indeed, most settlements are in cases where the defendant has the far stronger case and the greater likelihood of winning. The plaintiff attorney's goal is to prevent the case from ever going to trial and instead get a settlement for his client(s); the odds are generally against the plaintiffs once it goes to trial. The defendant settles in these cases because, especially if they're a large corporation, it's cheaper to settle early rather than pay their lawyers' fees (especially if appeals and such are counted), to say nothing of the non-zero (though, on average, less than 40%) probability of them losing.

    • by aborchers ( 471342 ) on Sunday August 03, 2003 @06:34PM (#6601963) Homepage Journal
      The people *never* get any sort of reasonable payout from these sorts of lawsuits


      Don't be so sure. I got ~$300 in merchandise vouchers (third-party stuff, not just Toshiba hardware, though of course it came through their catalog so the actual "damages" to them were probably half that) from just such a settlement against Toshiba a few years back.

      • Was that for the absolutely sickening extortion because of the alleged floppy drive data corruption bug?

        These class action lawsuits are completely out of hand. The lawyers are have recently been holding seminars on suing restaurants and food producers over high fat content.

    • These lawyer are getting 20% ($202 M for clients $48 M for lawyers) While $48M is a lot of money 20% is not really unprecidented.
    • Class actions lawsuits are the job programs for lawyers, just like NASA is a jobs program for the aerospace industry.

      Each member of the class gets a pittance, since usually the larger the claimed class, the more "clout" (define that as you will) wielded by the prosecution team. This is especially true with a low-Human-impact crime, like overcharging.

      The end product is the same ... the lawyers, lawyer teams, and law firms get hefty cash compensation, while the class members get compensation that is usually so intellectually insulting that it's not worth wiping your arse with the resulting paperwork token. I recall the AOL class actions and their outcomes ... truly, they were poster children for this kind of thing.

      I consider this kind of thing almost essentially out of the hands of the public. The lawyers have figured out how to ride to wealth on the backs of widespread small offences. I'd suggest that for a fix I'd say whyyyy there oughta be a law ... but we all know that it would be left up to lawyers to place restrictions on the behavior of their own class, which seldom occurs to any meaningful degree. You may as well expect a police review board to be critical about cops shooting people; they just don't do that since there is no dissenting viewpoint in the oversight mechanism to begin with.
  • is it really worth signing your rights away for a measely $12?
  • by man1ed ( 659888 )
    $200 million is a decently sized chunk of money, but I would have preferred to see more enforcement fo the federal anti-trust judgement and settlement. I think that would have done a lot more for a lot more consumers than paying $5-12 to a bunch of people in Florida.
  • What's the Big Deal? (Score:2, Interesting)

    by tealover ( 187148 )
    The plaintiffs in a class-action suit typically never outlay any of their own money. The terms of entering into an agreement are laid out and well known so I don't understand what the problem is.

  • by AndyFewt ( 694753 ) * on Sunday August 03, 2003 @06:15PM (#6601869)
    Class Members will be eligible to receive a total maximum amount of $202 million in vouchers, worth $5 for each license for Microsoft MS-DOS, Windows versions 1.0 to 3.2, Windows NT Workstation, Windows 2000 Professional, Word, Excel and Office software, and $12 for each license for Windows 95, Windows 98, and Windows Millennium Edition that Class Members indirectly acquired in the United States between November 16, 1996 and December 31, 2002 for use in Florida

    Isn't this just yet another slap on the wrist for microsoft. It just makes them use their ill gotten gains from the monopoly, which probably has earned them quite a bit in interest anyway. I have a feeling this is a bit like the previous case, give them some punishment which "looks" big but doesnt actually have any affect on them.
    • From the looks of the settlement by accepting Microsofts coupons you waive any right to sue them for any trust practices past present or future. This has to be worth $200 mil to Microsoft. If they could pull this off in the other 49 states they would have license to monopolize forever for just 10 billion dollars. A lot of money but as I remember microsoft keeps about 40 billion liquid just for this kind of thing.
      • $202mil is pocket change to MS.. sad but relatively true. What happened to the "we're going to split them up"?.. Mow it's we're going to turn them into a foodstamp and software company! Next they'll be putting free coupons out in snailspam or on the side of xp boxes.. "Free mcdonalds kids meal when you buy one copy of windows xp home edition.. subject to terms and conditions, by taking this meal you waive any right to sue microsoft for anything, ever"... the last meal?
      • by whovian ( 107062 ) on Sunday August 03, 2003 @07:20PM (#6602142)
        The way timothy summarized that article, I sure thought the Class members had to waive claims to any future infractions by Microsoft. (In today's corporate world, I wouldn't doubt it.)

        Anyway, this is indeed not the case. Timothy missed the part that states
        The release does not include claims relating to Microsoft's conduct, acts or omissions that take place after December 31, 2002. However, class members release any and all claims described above relating to Microsoft's conduct, acts or omissions that
        occurred on or before December 31, 2002.[emph.]

  • by Anonymous Coward on Sunday August 03, 2003 @06:16PM (#6601879)
    Caveat: IAAL.
    Of course the lawyers' payout will dwarf the payout of the individual class members - that's exactly why the class-action is structured this way. Individual claims are not worth enough to each member, considering the time, energy and money necessary to pursue an action. Aggregating the class makes this worthwhile, and attorneys take a percentage - and, often, these suits go nowhere, with a contingency of zero.
    • by Otter ( 3800 )
      I'd be more sympathetic if the class members were each getting something and the lawyers got a huge pile.

      In this case, as frequently happens, the class members get effectively nothing ($12 coupons) while the lawyers pocket their share in cash -- and the class members have to actively opt out.

      Sorry, I just can not see why judges allow settlements like this to go through. Like someone else said, if the class members get $12 coupons, the lawyers should get a big pile of $4 coupons.

      • Sorry, I just can not see why judges allow settlements like this to go through.

        Judges have nothing to do with out of court settlements. A settlement is not the same as an award to the plaintiff. A settlement is basically one side agreeing to give the other side some money if they drop the lawsuit. See?

        • by Otter ( 3800 )
          Save the bold tags and sarcasm for when you're actually right, OK?

          Settlements typically have to be approved by the judges -- judges can and will bar them if they feel they're not in the interest of the plaintiff or public. No doubt there are subtleties where a settlement doesn't require approval in some cases but I bet that's not what you're talking about.

          • Save the bold tags and sarcasm for when you're actually right, OK?

            Settlements typically have to be approved by the judges -- judges can and will bar them if they feel they're not in the interest of the plaintiff or public. No doubt there are subtleties where a settlement doesn't require approval in some cases but I bet that's not what you're talking about.


            Couldn't have said it better. Amazing how many otherwize intellegent and educated people don't understand that. Another point to make is that the vas
      • Like someone else said, if the class members get $12 coupons, the lawyers should get a big pile of $4 coupons.

        Think about your statement. A law firm "invests" probably ten million dollars in out of pocket costs to bring a suit of this magnitude. That money can't be recovered if they lose. They win the suit, and they should only expect coupons?

        Would anyone run any business on those economics?

        Any attorney who works on contingency is engaging in speculation. They won't undertake the risk unless the

  • Lawyers... (Score:3, Insightful)

    by danormsby ( 529805 ) on Sunday August 03, 2003 @06:17PM (#6601886) Homepage
    Headline : Lawyers Get Overpaid SHOCK.

    Too many lawyer jokes can be inserted here.

  • Slightly misleading (Score:5, Informative)

    by acxr is wasted ( 653126 ) * on Sunday August 03, 2003 @06:20PM (#6601898)
    I believe /. article is a bit misleading. It makes it seems like the attorneys are taking their fees directly from the total settlement amount. From the article:

    If the Court approves the settlement, the Court will determine reasonable attorneys' fees and expenses to be awarded to Class Counsel. The attorneys' fees and expenses approved by the Court will be paid by Microsoft, and will not reduce, in any way, the amount of Settlement Benefits paid to Class Members.

    So really, the people aren't getting stiffed, they're just getting gypped. However, the people of Florida will get some indirect benefits:

    Microsoft will donate to public schools in Florida with at least 50% of their students qualifying for the federal free and reduced-price school lunch programs, 50% of the difference between the total maximum amount of the vouchers ($202 million) and the value of issued vouchers, if the settlement is approved.

    So, while the settlement values seem extremely small, in reality, they're just small. At least the vouchers aren't for more Microsoft software.
  • Can they do this? (Score:2, Interesting)

    by duffhuff ( 688339 )
    ... settle and release all claims, demands, actions, suits, and causes of action against Microsoft [that they] ever had, could have had, now has or hereafter can, shall or may have.

    So everyone who's involved can *never* sue Microsoft again for anything related to Anti-Trust? They take their slap on the wrist, and go laughing all the way to the bank? I guess double jeopardy could be a factor, as subsequent lawsuits would be mostly the same, but this seems to go a tad too far.
    • by snkline ( 542610 )
      Double Jeopardy is not an issue at all. You have to understand that double jeopardy is only an issue in criminal cases. Civil law has no such concept.
    • Re:Can they do this? (Score:3, Informative)

      by Keeper ( 56691 )
      The settlement "settles" any and all anti-trust wrongs MS may have done in the past. By accepting that $5 or $12 check, you agree to the terms of the settlement (ie: you agree that $5-$12 covers any and all "damages" MS did to you, regardless of things you may or may not know about at the date of the settlement).

      This does not cover any future wrongs they may do, just existing ones that you may or may not know about today.

      Of course, the typical IANAL disclaimer applies.
    • ... settle and release all claims, demands, actions, suits, and causes of action against Microsoft [that they] ever had, could have had, now has or hereafter can, shall or may have.

      So everyone who's involved can *never* sue Microsoft again for anything related to Anti-Trust?

      No, it simply settles all claims there were, or could have been alleged. As stated in the article, the settlement provides that it bars any claim:

      relating in any way to ... any conduct, act or omission that was or could have b

  • by jimson ( 516491 ) on Sunday August 03, 2003 @06:21PM (#6601903) Homepage
    Lawyer speak is so great. Where else, besides an Eminem rant, would you hear such a string of words as: (empasis added by poster)

    ever had, could have had, now has or hereafter can, shall or may have

    That sounds like an Eminem lyric to me.......bitch.
  • wasn't that clause in the XP license agreement anyways.... microsoft really zinged them.
  • by 56ker ( 566853 ) on Sunday August 03, 2003 @06:22PM (#6601907) Homepage Journal
    Everyone who bought a Microsoft product gets $5-$12 in cash and the lawyers get a $48 million voucher to spend on Microsoft products. *grins*
  • Seems like the obvious choice to me, if people agree then both M$ and the Lawyers win... how does that help the forces of good!
  • Did people expect Microsoft to buy them a new car? How about a new house? It's a measly computer program, when all is said and done.

    They're paying out $202 million. Admittedly, Microsoft still has plenty left over, but I'm dead certain they didn't want to pay even THAT much.

    As for the attorney's fees, again, why should these people work for free? Can you imagine the expense involved in something as simple as photocopying the documents required in this case? It's enormously expensive to run a lawsuit
    • by Guppy06 ( 410832 ) on Sunday August 03, 2003 @06:49PM (#6602026)
      "It's a measly computer program, when all is said and done."

      No, it's a $300.00+ program, and that's not counting (the price of) the time and effort wasted using Microsoft products instead of better products that were forced out of the market by Microsoft's illegal business practices.

      I'll stop complaining when the payout per-plaintiff is an appreciable fraction of the retail price of the software.
      • ...that's not counting (the price of) the time and effort wasted using Microsoft products instead of better products that were forced out of the market by Microsoft's illegal business practices.

        Sorry, I've got to quibble here. What product has been specifically cited as being forced out of business? Netscape? Sure, MS screwed them royally, but they did plenty to shoot themselves in the foot as well. If there were more clear-cut direct cases of people being run out of business by MS, the case would hav

    • There's a number of things wrong with this that aren't directly related to microsoft. Formost of which is the class-action lawsuit system, which is just a way for the rich to prey upon the rich in the name of the little guy. For smaller, individual suits, I guess taking a quarter of the winnings, if you're taking it on contingincy, isn't too bad, but when you're dealing with hundreds of thousands of claimants, there's a certain economy of scale that's not being recognized. I doubt the law-firm, had they
    • i guess they were expecting that microsoft would be forced to stop their anti-competitive tactics so that other products have a fair chance on the market, isn't that the _WHOLE_ point of such a lawsuit(a point which is totally lost by settling)?

      .

    • Hmm.

      The problem is the scale of the lawyer's cut. $48 million? One has to ask how many lawyers there were actually working on the case (i.e. real, hard work), what their expenses were, and what the (real) time put in was.

      I'm willing to bet the end result is in excess of $300 net per man-hour of work. Consider that that's roughly FIVE TO TEN TIMES what most other highly skilled professions draw as a salary.

      Do they deserve to be compensated? Of course! Just not to this extreme.
      • Yeah, but the additional compensation over their normal fees is made up for by the chance that they might not make any money at all.

        If you have a choice between your job making $100/hr and a 50/50 chance of $1000, you should take the chance, if you look at the math.

        Lawyers aren't going to want to take a chance of not getting paid their normal rate when they could work for someone else and be guaranteed just as much. Contingent fees have to be high enough to be attractive or no one will ever take a case o
    • It's a measly computer program, when all is said and done.

      It's valuable. A single Microsoft OS can cost you up to 199 to 299 IIRC. Yes, it's a measly computer program not worth the money you fork over to MS for it, but that's not what matters. The market value matters. Cash should be returned at the retail price of the OS in question, back when it was still available.

      the lawyers deserve to get paid.

      Yes, they do need to get paid reasonably. 600 dollars per hour is a bit too much isn't it? Have

    • Can you show more than $12 in lost productivity because of microsofts trust practices? I know I can. Settlements like this are supposed to discourage monopolistic behaviour by making it unprofitable. 200 million is a drop in a very large pool, this won't affect M$ at all.
  • by tongue ( 30814 ) on Sunday August 03, 2003 @06:28PM (#6601943) Homepage
    The settlement terms have several interesting clauses; for instance, by accepting, you would be agreeing to "settle and release all claims, demands, actions, suits, and causes of action against Microsoft and/or its directors, officers, employees, attorneys, insurers or [snip...]

    how is that interesting? that's what a settlement IS--they give you something and you release them from any further liability. This whole reading-comic-books-between-the-lines editorializing is really getting old.
  • by Crashmarik ( 635988 ) on Sunday August 03, 2003 @06:30PM (#6601949)
    I signed up for payout from the settlement for cd price fixing. I still haven't seen a dime. I doubt I ever will. In case it hasn't become very obvious, class actions are little more than gigantic bribes to law firms.
  • but dammit, I wish I was now. But at least I can console myself with the fact that IANAL makes for a cooler license plate than IAAL!
  • by JessLeah ( 625838 ) on Sunday August 03, 2003 @06:32PM (#6601958)
    The story mentions "Windows 3.2". There was no Windows 3.2...
  • Not that interesting (Score:3, Informative)

    by leviramsey ( 248057 ) on Sunday August 03, 2003 @06:43PM (#6601999) Journal

    By taking the settlement money, you've settled your claim with Microsoft. If you don't think this is a fair settlement, then don't take it and pursue your own case.

  • by kaltkalt ( 620110 ) on Sunday August 03, 2003 @06:43PM (#6602003)
    There's nothing "interesting" about a release clause. When you settle a lawsuit, that's what happens (or else why the hell would they settle in the first place?) Note: nobody was forced to join the class action.
  • I'm from Florida... (Score:4, Informative)

    by bigdoof ( 566322 ) on Sunday August 03, 2003 @06:47PM (#6602019)
    I got a letter in the mail, and it includes a form that lists every single elegible piece of Microsoft software that you have ever registered. Even stuff all the way back from Windows 3.1 counts! In all, they "owe" me over $1200.

    And let's face it folks, even though the settlement is given in the form of vouchers, we're geeks. Like it or not, we're going to buy computer equipment and/or software anyways within the next few years. The vouchers seem to be good towards almost anything of this nature, so it's really not as bad as you think it is. In principle, it's not as good as cash. But economically, it's exactly the same thing. And if not, there's always eBay.

    • by bigdoof ( 566322 )
      Just as a follow up, I reread the proposed settlement. It says:

      "...a Class Member will be eligible to receive a voucher or vouchers in the amounts indicated below, which can later be redeemed for cash if the Class Member purchases, after April 15, 2003, Qualifying Hardware (including personal computers, Apple Macintosh computers, laptop computers and Tablet PCs), or Qualifying Software (including most generally available software made by any caompany for Qualifying Hardware)."

      People with voucher totals

  • $5-12??? (Score:5, Funny)

    by tilleyrw ( 56427 ) on Sunday August 03, 2003 @06:49PM (#6602027)

    I think that MS is openly admitting that their products only cost $5-12 dollars.

    I would allocate that as:

    • $0.01 / blank CDR
    • $0.09 / per employee on team
    • $0.90 / free donuts and coffee
    • $4.00 / Bill Gate$
  • In the USA, everything goes to the lawyers... Fuck the people.
  • by kcbrown ( 7426 ) <slashdot@sysexperts.com> on Sunday August 03, 2003 @07:05PM (#6602086)
    Notice how often a judgement is either outrageously high or outrageously low?

    Seems to me that the real problem is that the judgements are always in terms of dollar amounts. $200 million is a big chunk of cash to almost everyone -- except Microsoft. To Microsoft, $200 million is nothing, half a percent of the amount of money they have in the bank.

    Similarly, the little guys often get judgements against them that are tiny in comparison to $200 million, but which easily bankrupt them because they aren't Microsoft -- they're just normal people with normal incomes (if that).

    None of this would be a problem if judgements (and settlements) were forced to be expressed in terms of the percentage of the worth of the target. An individual who is forced to pay, say, 20% of their total worth in a judgement or settlement would be hurt pretty badly by it, but they'd almost certainly survive. And the same is true of a huge entity like Microsoft. But the dollar values would be much different. $20K (for instance) against the individual, and something like $20 billion against Microsoft. But those amounts would yield roughly the same effect, and it's the effect that's important in any judgement or settlement.

    The bottom line is that, in my opinion, the people who judge these settlements or who create these judgements simply don't think properly about the problem. They're focused on the amounts and not the effects.

    That's to be expected in a money-driven society, I suppose...

    • OF course, a big company like Microsoft would be able to, through various creative accounting methods, offshore investments and the like, reduce their 'worth' to far less than the company's really worth.
    • This wasn't a judgment, this was a settlement. You can't lump them together.

      A settlement is an agreement between the plaintiff and the defendant to a dollar amount that makes everyone "happy" enough to drop litigating the case. Here, Microsoft is essentially saying, fine, it's worth $202 million to us to be able to drop this case and the risk that we'd be adjudged against. The plaintiffs are essentially saying, $202 million takes care of enough of our "suffering" to make us drop this case AND the risk t
  • To accept that you are to hold them harmless for any future antitrust issues is outright illegal.
  • by melted ( 227442 ) on Sunday August 03, 2003 @07:17PM (#6602130) Homepage
    Wouldn't that be AWESOME?
  • Whenever people, especially political types, say this will happen before the lawsuit occurs, they are said to be "big business". I think all the money in this class action would have been better spent coming up with a good competitor to Microsoft...
  • by NBarnes ( 586109 ) on Sunday August 03, 2003 @07:33PM (#6602190)
    It does bear mentioning that while the lawyers involved are getting a rather tidy sum of cash, it does only amount to 20% of the total. If the lawyers were all saints and accepted no money for their slaying of the MS dragon, the payouts would have gone from, and I agree that it's a silly small amount, $5 to $12 to... $6 to $14.40.

    If the payout seems rediculously small compared to how much MS's actions cost consumers, then it's less the fault of the lawyers skimming the payouts and more the fault of the anti-trust system that allows MS to profit billions from it's illegal monopolies and only pay millions when caught.

    On the broader topic of 'frivolous' lawsuits, I do deeply recommend to people that are interested in a fair society that they educate themselves about where that particular piece of memetic propaganda is coming from. It's not from anybody that has your interests as a citizen or consumer at heart.
    • Since it was the public that was harmed, the pay out should have been to a public facility, such as putting computers in public libraries or some other public expendature since the amount per person is so small it isn't worth applying for.

      The lawyers sucked in this case, and they shouldn't even have collected their 20%
      • This was a class action suit. "The public" is not the same as "the class." In any suit, of course, damages are paid to the ones who suffered AND SUED for the suffering. Here, same thing -- damages paid out are damages to the class, not to "the public."

        If you want a payout to the public, the government is the only entity that can sue on behalf of the public and get a payout to the public.

        The lawyers sucked in this case, and they shouldn't even have collected their 20%

        Because of the public thing? The
  • by raehl ( 609729 ) *
    Is that the going rate for a soul nowadays?
  • New payment method (Score:5, Insightful)

    by rossz ( 67331 ) <ogre@@@geekbiker...net> on Sunday August 03, 2003 @07:52PM (#6602297) Journal
    In my opinion, lawyers for class action lawsuits should be paid, "in like manner and no more than 10x the individual payout."

    So that means the lawyers should get $120 worth of Microsoft coupons. That seems fair to me. Hell, I'd even be willing to increase it to 100x the individual payout, but the "in like manner" needs to stay. I've been screwed before with the coupon payouts (BoA many years ago), and won't have anything to do with class action lawsuits because of that.

    Under the current system, the lawyer's only incentive is to enrich themselves, without regard to the clients.
  • Given the lack of any reputation for sucking the life out of society, dwarves will be utilized as legal representatives in all future lawsuits against Microsoft. When asked if this decision was made due to the similarity of description of dwarves and the word components of "Microsoft's" moniker, an anonymous spokesman said, "no comment."

    **Hug a dwarf**
  • by cenonce ( 597067 ) <{anthony_t} {at} {mac.com}> on Sunday August 03, 2003 @09:32PM (#6602851)
    First off, it is not like the people who are a part of this class can never sue MS again. They just can't sue it as part of this particular Class. As I read it, if Microsoft injures a class member in the future, he or she can sue individually or part of another different class.

    Second, the settlement is misquoted and actually says "Class Counsel will seek attorneys' fees in an amount not to exceed $48 million". Not to exceed $48 mil != $48 mil. But think about it: Putting a class action suit together involving potentially millions of class members, notifying all potential parties (by placing expensive newspaper ads, sending mailing and perhaps advertising on TV), meeting with class members, explaining their rights, dealing with tons of discovery material (from class members and MS), going to court, negotiating with MS, handling stonewalling from MS, taking the malpractice liability risk of a case of this magnitude against a company like MS... yeah, I bet the fees are going to be justifiably high!

    Third, yeah, 12 bucks worth of vouchers sounds sucky... but how many of these class members used Windows for four years and now expect a full refund? Cut me a break! Talk about unjust enrichment!?! Really, what kind of individual recovery do you expect for software that is worth half the cost of what MS charges for it? Enough vouchers to buy a new G5!?!

    Of the million or so class members in this suit, how many are "true" Opens Source users who the minute they bought a machine, completely deleted Windows and installed *nix. They deserve a full refund, but they are better recoving it on their own instead of a Class Action suit.
  • by macwhiz ( 134202 ) on Sunday August 03, 2003 @10:31PM (#6603146)

    John Grisham's most recent book, The King of Torts, explains a lot about the mania for class-action lawsuits lately. While it's fiction, Grisham is an attorney, so he knows what he's talking about. He doesn't paint a pretty picture.

    Class-action lawsuits are easy money for lawyers. Find a big enough "class" and you can soak the defendant for lots of money. The fees can be huge, especially if there's the typical "we get one third" sort of fee structure.

    Because the lawyers are looking at huge bucks because of the sheer volume of plaintiffs, they don't necessarily care how big the individual settlements are. If you get $12, and they get $4... if the class has a million people in it, that's $4 million made without going to trial.

    Anyway, it's a good book, but a scary one. I'll certainly never look at a class-action notice the same way again.

    (I've been out of work for a while now, thanks to Global Crossing's bankruptcy. Slashdot won't accept links to Amazon Associate URLs in comments, but if you'd like to help me out and contribute to my book-money fund without raising your cost, you could buy the Grisham book through this URL: <http://www.amazon.com/exec/obidos/ASIN/0385508042 /macwhiztechnolog>)

  • by apc ( 193970 ) on Sunday August 03, 2003 @11:00PM (#6603277)
    is completely boilerplate. Not a Microsoft trick. Pretty much the same text I see every day when dealing with insurance companies, for instance. (IAAL)

    Incidentally, for those of you griping about the legal fees, keep in mind the lawyers get nothing if they don't win the case, have to pay support staff all through the suit (including multiple associates who themselves are making in excess of a hundred grand a year), not knowing whether they'll win or not, and have to justify every bit of their time to the Court down to each tenth of an hour (I left the computer industry, pissed about billing my time in 15 minute increments. Now I do it in six minute increments). $48 million, incidentally, while a large sum of money, is comparatively small in the world of class actions. There's one in the Third Circuit right now where the legal fees will likely reach $3 billion, spread among about 20 law firms.

    I'm not a class action lawyer, and I don't make anywhere near a hundred grand a year. But I've seen these guys, and for the work they do and the risks they take, their fees, while high, are not outrageous. (Most contingency fees are in the neighborhood of 33-40% in the rest of the legal profession)
  • by GauteL ( 29207 ) on Monday August 04, 2003 @05:26AM (#6604362)
    So what is so special about Florida? Am I right in guessing that just about any state and country can enter into the same kind of lawsuit?

    So if $200M seems like a small amount of cash to Microsoft, then how about 50-100*$200M. It is starting to sound like a lot of money even to Microsoft.

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