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Epson America Settles Consumer Class Action

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Case ID: 4761 | Consumer Products | 04/18/2006

Epson America, Inc. announced that a settlement of a class action lawsuit relating to Epson inkjet cartridges has been preliminarily approved by the Superior Court of the State of California for the County of Los Angeles.

The settlement resolves lawsuits filed in California, New York and Texas based on various legal theories relating to the performance and other characteristics of Epson inkjet printer cartridges. Among other things, plaintiffs alleged that a substantial amount of ink remains in Epson inkjet cartridges when the Epson printers for which they are designed indicate that the cartridges are "empty," and suspend printer operation. Epson America denies these allegations and maintains that an ink safety reserve ensures print quality and reliability. The Court has not ruled on these allegations but Epson America has agreed to settle the action.

Under the terms of the settlement, the settlement class -- consisting of all persons or entities located within the United States who purchased or otherwise acquired an Epson brand inkjet printer between April 8, 1999 and May 8, 2006 -- will receive a $45 per-printer credit for Epson America's online E-Store which may be used to buy replacement inkjet cartridges or any other product sold at the E-Store. The credit will be provided automatically to every class member who has already registered a printer with Epson America and to those who register a qualifying printer within 90 days after the final approval of the settlement. Alternatively, class members may reject the credit and mail in a claim form to receive either: (a) a check from Epson America in the amount of $25 and a $20 credit at Epson America's E-Store; or (b) a 25% discount off purchases at the Epson America E-Store, to a maximum discount of $100. Class members who do not wish to register with Epson America may also receive any of the three forms of alternative settlement benefits by mailing in the same claim form.

The settlement does not require any changes in Epson's printer technology, but Epson America will make changes to its product packaging and software in order to clarify that when the printer signals that a cartridge must be replaced a variable amount of ink remains. Epson America's web site will also display language explaining why there is an ink safety reserve.

A final approval hearing has been scheduled for August 15, 2006, following mail and publication notice of the settlement to Class members.

The settlement is available to anyone located within the United States who purchased or otherwise acquired an Epson brand inkjet printer between April 8, 1999 and May 8, 2006.


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