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Presario Computer Owners Settle With Compaq for $3 Million Over Quick Restore Technology

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Case ID: 2549 | Technology | 07/15/2003

The parties have reached a tentative $3 million settlement in a class action against computer manufacturer Compaq Computer Corporation, now a division of Hewlitt-Packard Company, on behalf of all persons who purchased a Compaq Presario computer that had a single hard drive that came with back-up software stored on a second partition, between the approximate dates of January 1, 1999, and September 1, 2001. The action alleged that Compaq failed to fully disclose the manner in which it supplied backup software with these computers in violation of federal computer-related fraud laws. Claims must be received no later than December 31, 2004, to be considered valid.

Specifically, the settlement class is composed of all persons or entities who are current residents of the United States and who purchased new partitioned Compaq Presarios in the United States from a retail store, a mail-order retailer, or directly from Compaq. Excluded from the settlement class are: (1) resellers or distributors of the these computers; (2) current or former Compaq employees; and (3) any persons or entities that have executed releases releasing Compaq from liability concerning or encompassing any or all claims that are the subject of the settlement.

From the beginning of 1999 through September 2001, certain Presario models contained single hard disk drives that were partitioned by Compaq into two partitions, labeled "C:" and "D:" Compaq shipped some of the partitioned models with "Quick Restore" CD-ROMs containing backup and restoration software for these computers (the "QR Models"), but shipped other partitioned models without separate Quick Restore CD-ROMs (the "Non-QR Models"). Compaq shipped all partitioned computers, including the QR Models, with backup and restoration software pre-installed on the D: partition of the hard drive.

You can determine if your Presario computer is one of the affected models by looking at its model number tag, which is located on the front of the computer, near the power button. The notice of settlement, which may be found on the settlement website, has a complete listing of the models that were partitioned. There are 119 QR models, and 204 Non-QR models.

The action alleged that Compaq acted deceptively by partitioning the hard drives of the partitioned models, pre-installing backup and restore software on the D: drive of the partitioned models and, in the case of the Non-QR Models, failing to provide backup and restoration software on separate CD-ROMs, without disclosing these aspects of these computers in its promotional and advertising materials. The action sought unspecified compensatory and punitive, plus an order prohibiting Compaq from continuing to sell the computers without full disclosure.

All affected Presario owners may download software that will remove the D: partition and its contents. The partition removal software will be usable only by persons who have not (1) installed a different operating system from the one originally installed on their computers or (2) changed the partition configuration of their hard drives. Persons who use the software will have an undivided, single "C:" drive containing the full quantity of the drive's total capacity. Persons will be able to download the software by visiting the support section of Compaq's Internet website and entering their model information. The software will be available at the Compaq website until at least December 31, 2004.

Class members who are registered owners of Non-QR models, and who previously paid Compaq a $10 charge to receive stand-alone Quick Restore software, as reflected in Compaq's records, because they deleted or intended to delete the pre-installed backup and restoration software from their hard drives, will be eligible to receive a refund of no more than one such charge. To receive a refund, you must complete a claim form and attest that (1) you are the original purchaser of a Non-QR model; and (2) you requested and paid for stand-alone Quick Restore software from Compaq because you had deleted or intended to delete the pre-installed backup and restoration software from the D: partition of your Non-QR model. You will also have to provide the date of the charge.

All persons who are registered owners of Non-QR Models, who have not otherwise received Quick Restore CD-ROMs, and who are not electing to receive a $10 refund for a past purchase of the software, may request to receive a single Quick Restore CD-ROM at no charge. To do so, you must complete a claim form, providing your computer's model number, serial number and other identifying information.

No cash or other class benefits will be distributed until the settlement becomes final and non-appealable.


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