Microsoft Corp reaches settlement in Iowa lawsuit

Seattle, Feb 14: Microsoft Corp said today it agreed to settle a class-action lawsuit in Iowa that accused the world's largest software maker of overcharging consumers in the state.

The terms of the settlement will not be disclosed until the court approves the agreement in April, the two sides said in a news release. The plaintiffs' lawyers were seeking damages of up to 330 million dollars in the trial that began in November.

The Iowa case and another case in Mississippi are the remaining class-action lawsuits against Microsoft pending in state courts.

Microsoft has settled or had dismissed most of the other similar lawsuits in state courts.

The class-action lawsuits from the states allege that Microsoft used its market position to overcharge consumers.

The states cases differs from the antitrust case brought by the US Department of Justice which claimed that Microsoft used its monopoly to harm competition by incorporating new features into its operating systems at no additional costs.

The Iowa settlement will provide compensation for individuals and businesses who purchased a Microsoft operating system and application software including Word, Excel and Office from May 1994 to June 2006.

Shares of Microsoft rose 45 cents to 29.48 dollars in midday Nasdaq trade.

Reuters