There is a Texas personal injury lawyer who came up with a moneymaking plan involving the laptop computer industry. Have a lawsuit filed against the company for a problem that never happened. If you are one of those involved in selling laptop computers, then you shouldn’t be laughing about this. Price increases may result from the fact that copycat lawsuits have also been filed against other companies as well.
The story of a $9 lawsuit filed against a Japanese appliance maker on behalf on 5 million consumers ended in a settlement of $2 billion. Since the risk of losing more money was great if they tried to battle the lawsuit, the company decided on a settlement.
It was through this settlement that a group of lawyers managed to earn around $147 million in contingency fees. The company distributed discount coupons and gave cash rebates to the million owners of their notebook computers. The plaintiffs responsible for the lawsuit filed last March were owners of laptop computers.
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. These two men did not suffer and losses or damages despite the flaw they found in their laptops.
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. It was only when the lawsuit was filed last March that complaints from customers began coming in. The laboratory tests run by the company did not reveal any data loss that may have come about from the flaw.
If the Japanese computer maker had lost a jury trial, it could have cost the company more than $9 billion enough to jeopardize its future. 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 lunged in even before the sound of the splash disappeared. Lawsuits were immediately filed against another five laptop manufacturing companies who were users of the NEC floppy control chip.
Layoffs are becoming a possibility now that these businesses are being hit by copycat lawsuits. The problems have definitely gone bigger. These billion dollar settlements may cause personal computer prices to go up, a New York financial analyst stated. Economists claim that falling computer prices have led to low inflation rates for the past twenty years.
For a few hundred dollars, today’s lowest priced computers offer thousands of times more speed and capability than models costing $5,000 or more did a mere 20 years ago. Computer prices are sure to soar if laptop manufacturers are bullied just like the Japanese company. This is not regarded as good news for those who cannot afford it.