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Case ID: 2703 | Technology | 09/16/2003
Two related class actions have been filed against Microsoft, Inc. and retailer Best Buy Company, Inc. on behalf of consumers who allege that the companies fraudulently charged Best Buy customers for MSN Internet access accounts they never signed up for in violation of state consumer protection laws and the federal Racketeer Influenced and Corrupt Organizations (RICO) Act. The actions seek repayment for the amounts billed to consumers, disgorgement of all profits earned through the practice, punitive damages, and an order that will force the companies to stop secretly activating accounts.
One of the actions, Kim v. Microsoft Corporation, is filed in the state courts of California and covers all Californians who had accounts created in their names through the scanning of a Best Buy MSN trial CD since May 6, 1999. The other case, Odom v. Microsoft Corporation, is filed in federal court and proposes a class consisting of all persons in whose names an MSN service account was established by the scanning of a MSN trial period CD at a Best Buy store from May 15, 1999, to the date of any eventual judgment in the action. The plaintiff in the California action, Samuel Kim, alleges that he purchased a computer at a Best Buy electronics store in February 2003. As part of a promotion with Microsoft, Best Buy allegedly gave him a free trial compact disc for Internet access through Microsoft's MSN service. At the checkout, the clerk scanned the CD. When Mr. Kim inquired why it was scanned, the clerk allegedly told him it was for inventory purposes. The actions allege that clerks do not volunteer any information, but normally just put the scanned CD in the bag with purchased merchandise. Allegedly, information scanned from the CD as well as the customer's credit or debit card automatically triggers MSN to create an Internet access subscription in the customer's name. Once the free trial period ends, MSN allegedly charges the customer's credit or debit card account, even though the subscription was never voluntarily activated. If the customer is purchasing a computer, the actions allege that the trial period runs six months, while purchases of any other merchandise trigger a 30-day trial period that runs before MSN charges the customer. The federal action seeks treble damages as allowed by RICO. At Lawcash.com, it is our goal to keep you informed about important legal cases, class actions and settlements. Our lawyers offer free legal evaluations in tort cases, class actions, personal injury, and other lawsuits because we are dedicated to helping you resolve your legal complaints. Other Technology Cases of Interest The parties have reached a tentative $3.55 million settlement in an action filed against nuclear medicine company ADAC Laboratories, Inc. and Koninklijke Philips Electronics N.V. on behalf of stockholders who sold the company's stock in connection with the acquisition of ADAC with Koninklijke Philips Electronics N.V. via a November 2000 tender offer and subsequent merger. Persons eligible to participate in the settlement must file a proof of claim postmarked no later than May 4, 2004. Several class actions have been filed against rich media communications company First Virtual Communications, Inc. (Pink Sheets:FVCC.PK), and certain of its officers and directors by stockholders who purchased the company's common stock between March 29, 2004, and August 23, 2004. The actions claim that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company's securities. When you give out personal information on the Internet, how confident are you that it is being protected? A $1.2 million settlement has been reached between the parties in a class action filed against streaming media company RealNetworks, Inc. on behalf of Californians who allege that the company gathered and sold personally identifiable information regarding them between March 1, 1999, and March 1, 2000, in violation of California's consumer privacy laws. Claims must be submitted via the Internet by August 27, 2003, to be considered valid.
On September 11, 2003, the jury ruled against the plaintiffs in a class action filed against computer giant Hewlett-Packard Company on behalf of North Carolinians who purchased certain HP DeskJet, OfficeJet, or Photosmart printers between August 1, 1998, and November 30, 2000. The action alleged that HP did not disclose to consumers that the ink cartridges that accompanied the printers were only filled to half of their total capacity. Unless the plaintiffs appeal, this ends the case. An FTC administrative proceeding has been filed against the Internet Marketing Group, Inc., and affiliated businesses OneSetPrice, Inc., RPM Marketing Group, Inc., National Events Coordinators, Inc.; First Choice Terminal, Inc.; First Choice Terminal, Inc.; and B & C Ventures, Inc., on behalf of consumers who bought into multipurpose public access Internet terminal and telephone calling card business ventures since August 2001. The action accuses the defendants of making false and unsubstantiated earnings claims, and misrepresenting their cancellation and refund policies, in violation of the FTC's Franchise Rule and Telemarketing Sales Rule. A class action has been filed against Printcafe Software, Inc. (Nasdaq: PCAF) and certain of its officers and directors by stockholders who purchased the company's common stock between June 18 and October 22, 2002. |
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