Iomega Corp. is hoping to end the life of a class-action lawsuit stemming from "Click of Death" problems with the company's Zip drives and disks.
The Roy-based company and the plaintiffs' counsel have proposed a settlement in a Delaware state court suit filed in 1998. The plaintiffs alleged that the Zip devices had a manufacturing and/or design defect that sometimes caused the drives and the removable disks to fail, causing the loss of data that was stored on the disks.
The problem became known as the "Click of Death" because the alleged defect caused the drive to make continual clicking noises.
The proposed settlement calls for all U.S. customers who bought a Zip drive, either at retail or through a computer manufacturer, between Jan. 1, 1995, and March 19, 2001, to be entitled to certain rebates on various Iomega products.
It also requires Iomega to offer free technical support service for customers with questions regarding "clicking" problems with their Zip drives.
Iomega also would make a $1 million donation of its products and services to schools. The company would pay for settlement administration costs and plaintiff attorney fees.
The court will have a hearing June 8 to determine whether it will accept the settlement.
Iomega president and chief executive officer Bruce Albertson said the company was pleased to resolve the matter.
"Although the company continues to dispute the underlying allegations, Iomega believes that bringing closure to allegations about our products in the past is in the best interests of our shareholders and customers," he said.
"Iomega Corp. remains committed to providing consumers with high-quality products, reliable data management solutions and award-winning customer service that allows them to manage and enjoy their digital lives."
The plaintiffs' attorney, Mike Dodge, said the suit involved the examination of more than 150,000 of the company's technical documents, and the settlement could affect as many as 28 million Zip drive buyers in the class.
"We are pleased with the settlement, and the substantial benefits that the class, as well as our nation's schools, will receive as a result," he said. "The case presented many difficult legal and technical issues."
Rebate-eligible customers would need to submit a rebate request form, available at www.iomega.com/rinaldi/request_rebate.html, by Sept. 6. Request forms also are available by writing the company.
Dodge said affected customers who do not plan to buy additional Iomega products will be able to transfer the certificate to someone who is, or to give it to friends or family. The certificate also may be combined with one other non-settlement coupon or rebate offered by Iomega on the same product, he said.
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