Seagate settles suit over disk capacity

Seagate Technology has agreed to reimburse 5% of the purchase price to people who bought Seagate hard drives in the United States between March 22, 2001, and December 31, 2005 plus pay up to $1.79 million in plaintiff's attorney fees. The move settles a lawsuit, filed in 2005, of false advertising and unfair business practices which accused the world's largest maker of hard drives of measuring storage without taking into consideration how much can be used and therefore misleading consumers by promising 7% more capacity than the devices are actually able to deliver.

The Scotts Valley company sold 3.3 million hard drives in U.S. retail stores during the period in question, at an average purchase price of $140, meaning the average cash refund will be about $7 each. In lieu of payment, those customers are also eligible for a Seagate software upgrade package worth $40. In addition, people who bought Seagate hard drives in the United States between January 1, 2006, and September 26 of this year are entitled to a non-cash reimbursement in the form of the software package. The settlement was reached in September, and a judge granted preliminary approval September 26. Both sides were prohibited from publicizing the agreement. A final approval hearing is scheduled for February 7, 2008.

News source: Mercury News

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