Microsoft Corp is to hold a public hearing in Washington next Tuesday to outline the details of a US settlement of more than 100 class action lawsuits that alleged Microsoft products were overpriced.
Under the proposed settlement, Microsoft will provide more than $1bn in cash, training, support and software to help make computer technology more accessible to public schools serving nearly 7 million of America's most economically disadvantaged children.
Details of the five-year education program are outlined in a Settlement Agreement signed by the parties on Monday, which were filed with the Federal District Court of Maryland on Tuesday.
The program, if accepted by the Court, will provide cash, computer hardware, software, technical assistance and training to over 12,500 schools and more than 400,000 teachers who work in those schools.
"We are pleased to reach a solution that will benefit millions of America's most economically disadvantaged children and thousands of public schools with the greatest needs, and also will enable everyone to move beyond costly and unnecessary litigation," said Microsoft CEO Steve Ballmer.
"Just like the recent settlement of the federal antitrust case with the US Department of Justice and nine state Attorneys General, we believe this is a fair and reasonable solution that will benefit consumers, the high-tech industry, and the overall U.S. economy. We remain hopeful that the remaining state Attorneys General will join these settlement efforts."
The class action lawsuits were originally filed in both the state and federal courts. All of the federal cases were then consolidated in the Federal District Court of Maryland.
If the proposed settlement is approved by the Court, Microsoft will recognize a pre-tax charge of approximately $550 million in the current fiscal quarter ending December 31, 2001. Microsoft will provide additional detail on the financial impact of the proposal later this week.