IP: Toshiba to Spend $1 Billion to Settle Lawsuit

[Dave Farber <farber () cis upenn edu>]

http://www.nytimes.com/library/tech/99/10/biztech/articles/30toshiba.html

October 30, 1999
Toshiba to Spend $1 Billion to Settle Lawsuit


Toshiba Corp on Friday announced a $1 billion special loss for 1999/2000 to settle a U.S. lawsuit over its notebook 
computers, triggering a credit rating downgrade and a nine percent slide in the electronic giant's share price. 
In a further setback after unveiling dismal half-year earnings three days ago, Toshiba said on Friday it would incur a 
110 billion yen ($1.05 billion) special loss from the lawsuit, while trimming its annual earnings estimates. 

Two U.S. owners of Toshiba notebook personal computers brought the class-action lawsuit earlier this year, alleging 
that a condition in the micro-code for the floppy disk controller may cause data in a floppy disk to be lost or 
corrupted. 

Under the settlement, Toshiba will incorporate new floppy disk controllers in PCs for sale in the United States and 
provide eligible PC owners with coupons ranging from $100 to $225. 
Toshiba said it decided to settle 
...