Microsoft Settles in Massachusetts

06/29/04 - 05:20 PM EDT

Ronna Abramson

Microsoft(MSFT Quote) continued to clear its legal decks Tuesday with its settlement of a consumer class-action lawsuit in Massachusetts, the second private class-action suit settled this week.

Under the Massachusetts settlement, Microsoft agreed to give up to $34 million in vouchers to class members to buy any manufacturer's desktop, laptop and tablet computer; software; and peripherals. The class includes Massachusetts consumers who purchased certain Microsoft products between Jan. 3, 1996, and Dec. 31, 2002.

Microsoft agreed to provide one-half of any unclaimed vouchers to various public school districts to enable them to purchase a broad range of hardware and software.

The suit alleged that Microsoft violated the state's consumer protection and unfair competition laws and was among more than two dozen private suits filed in states around the country that piggybacked the findings of the U.S. antitrust case against the world's largest software maker.

On Monday, Microsoft announced a similar settlement in an Arizona class-action suit alleging that the company violated the state's antitrust and unfair competition laws. That deal will cost Microsoft up to $104.6 million.

The Massachusetts case is the 13th consumer class-action lawsuit to be settled by Microsoft.

Shares of Microsoft gained 22 cents, or 0.8%, to close Tuesday at $28.50; shares recently edged up 10 cents, or 0.4%, to $28.60 in after-hours trading.

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