Alleged Computer Flaw Reason for Lawsuit Against Japanese Manufacturer

by admin on October 24, 2010

A personal injury lawyer from Texas came up with a new way of getting money from the laptop computer industry. A lawsuit can be filed against a company for a problem that had never been encountered. This is not a laughing matter, especially if you are in the market for a laptop computer. Copycat lawsuits have been filed against five other companies, and price increases may be just around the corner.

When a lawyer filed a $9 billion lawsuit against a Japanese appliance maker, he was able to get from the company a settlement of $2 billion. A manufacturer of laptop computers as well, this company made the decision to settle the suit outside of court than risk losing more in court.

It was through this settlement that a group of lawyers managed to earn around $147 million in contingency fees. In addition, cash rebates and discount coupons were issued by the computer manufacturer to millions of those who had already bought their notebook computers years before. The lawsuit was filed last March in federal court for two lead plaintiffs who own the laptops.

The men, who received $25,000 each from the settlement, claimed a design flaw might, under extreme conditions, cause corruption or loss of data, when the laptops transferred data to a floppy disc. Significantly, neither of the men claimed to actually have suffered any lost data or other damage as the result of the alleged flaw.

The manufacturer of the chip claims that no complaint had ever been filed before about this feature in the laptop pointed out as a defect. Not one customer ever complained about the products of the Japanese company until the lawsuit was filed by the two lawyers. During the extensive laboratory tests, the company did not witness any loss of data that may have resulted from the law.

Had the Japanese computer maker lost the jury trial, they would have spent more than 9$ billion. Many legal observers claim that the case was easily defensible and that the company’s surrender was dropping meat with blood into the waters of the Gulf of Mexico. The sharks already approached the moment the splash was heard. Personal injury lawyers did the same thing, filing copycat lawsuits against five computer manufacturers who may have used the NEC floppy control chip.

These businesses are receiving lawsuits left and right, causing them to consider layoffs. Not the Texas legal climate, its black eye just got worse. The billion dollar settlements may cause prices of personal computers to go down, stated a New York financial analyst. For almost twenty years, the United States has been experiencing prosperity partly because of falling computer prices which have kept inflation low, say economists.

With a few hundred dollars in your pockets, you can already purchase good conditioned computers that do way better than the costly ones 20 years ago. The cost of personal computers would go higher for sure if greedy plaintiffs continue to bully laptop manufacturers. This is not good news for those who are struggling financially.

 


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