The Lawyer's Bold Move Against a Computer Manufacturer

A personal injury lawyer from Texas came up with a new way of getting money from the laptop computer industry. All he did was to file a lawsuit against a company on behalf of consumers over a nonexistent problem. This is not a laughing matter, especially if you are in the market for a laptop computer. Other companies have been sued, and price increases may happen in the near future.

A $9 billion lawsuit was filed by a lawyer against a Japanese appliance maker, and the entire escapade ended with the lawyer getting a $2 billion settlement from the company. This company decided to pay settlement than to fight the lawsuit in court because of the greater risk involved.

From this, he and his fellow lawyers were able to get around $147 million in contingency fees. The computer manufacturer agreed to give cash rebates ranging from $210 to $443 to an estimated 1 million owners of its notebook computers bought since over ten years ago, and to make discount coupons available to an additional 3 million owners. Two owners of laptops became the plaintiffs of this lawsuit which was filed last March.

According to the men who had received $25,000 from the settlement, the laptops had a design flaw which made corruption of data loss a possible scenario. Despite their claims that the so called flaw in the laptops could cause data loss, they did not even state that data loss was actually suffered by them.

The Japanese corporation which makes the chip, said it never has received a single consumer complaint about the alleged defect. It was only when the lawsuit was filed last March that complaints from customers began coming in. Extensive laboratory tests run by the company showed no loss of data which can be attributed to the flaw.

$9 billion would not have been the only cost paid by the Japanese company if they lost the trial. Ask the legal observers and they will comment that the capitulation was equivalent to throwing meat soaked with blood into the waters of the Gulf of Mexico. Before the disappearance of the sound of the splash, the sharks were already moving in. Manufacturers who used the NEC floppy control chip were suddenly faced with copycat class action lawsuits filed by personal injury lawyers.

These lawsuits are causing these businesses to consider layoffs. The injury may have worsened. One financial analyst from New York says that these billion dollar settlements would lead to soaring prices of personal computers. Economists claim that falling computer prices have led to low inflation rates for the past twenty years.

For a few hundred dollars, it is possible to buy low priced yet efficient computers that work better than those that cost $5,000 two decades ago. The prices of computers would skyrocket if the laptop manufacturers are bullied by greedy plaintiffs. This is good news for those with the money to spend, but bad news for those who cannot afford to do it.

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