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Purchasers of Newcom Computer Hardware Who Didn't Get Rebates Settle Action With Major Retailers for $1.6 Million

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Case ID: 2724 | Technology | 09/23/2003

The parties have reached a tentative $1.6 million settlement in a nationwide class action filed against defunct computer hardware manufacturer Newcom, Inc. and the retail outlets that sold Newcom products on behalf of all persons who failed to receive a promised rebate after submitting rebate documents showing that they had purchased a Newcom product. Claim forms must be received by the claims administrator by October 26, 2003, to be considered valid.

The action alleges that now-defunct Newcom manufactured modems that were distributed by Best Buy, Circuit City, CompUSA, and Staples retail outlets with a guaranteed rebate as a promotional device. When purchasers sent in the required documentation to claim their rebate, they allegedly received nothing in return, in violation of Michigan's consumer protection laws.

Claim forms may be downloaded from the settlement site or requested from the claims administrator by phone at (313) 259-6347, or by writing: Rebate Settlement Administration. P.O. Box 43157, Detroit, MI 48243-0157.

The settlement will provide $10 off a purchase of more than $200 for claimants who were entitled to a rebate of $30 or less, or $20 off a purchase of more than $400 for claimants who were entitled to a rebate of more than $30. Coupons must be presented for redemption within 60 days of the date they are received by claimants.

The settlement will not be effective until the court grants it final approval. The court has not yet scheduled a hearing on the matter.


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