Iowans to Get $179.5 Million from Microsoft

Microsoft has agreed to settle a class-action suit with Iowa for $179.5 million, which will make residents of the state who bought Microsoft products between 1994 and 2006 eligible for a cash settlement.

The amount will vary based on the cost of product purchased during the period. Each copy of Windows or MS-DOS is worth $16; Excel $25; Office $29; and Word, Works, and Home Essential $10.

Online claims under $100 and mail-in claims of $200 will require no proof of purchase, however those above that amount will require receipts. Corporations would be eligible for vouchers on the purchase of new Microsoft software.

Microsoft's decision to settle ends a seven-year battle, which saw the case reappear in state Supreme Court three times for various issues. The original suit claimed that the company had acted anticompetively and overcharged for its software.

Attorneys Roxanne Conlin and Rich Hagstrom filed the original lawsuit, and Microsoft originally offered to settle in February. However, details of the settlement were kept under wraps until now, when an Iowa judge gave his approval to the terms.

Half of the unclaimed proceeds from the settlement will go to rural and disadvantaged K-12 schools for the purchase of software and hardware. "This program directs money for technology to Iowa schools that need it the most," said Rich Wallis, associate general counsel for Microsoft.

"This case concerned issues that have long since been resolved, and we’re very pleased to put this chapter behind us and to focus on the future," Wallis added. "The world of technology changes literally at the speed of thought. Successful companies must spend their energy on creating new products and services rather than debating stale issues from 15 years ago in the courts."