Iomega settles lawsuit with rebate offer

While the vendor denied any problems with its products, it agreed to settle the lawsuit filed in a Delaware district court by paying its opponents' court fees of $US4.7 million and donating Zip drives and disks worth $US1 million to schools. The settlement applies to users in the US who purchased a Zip Drive between 1 January, 1995 and 19 March, 2001, according to court documents.

The law suit alleged that the drives contained a defect that caused a "clicking" problem, and as a result of this defect, users experienced damage to their hardware or to the information stored on the disks.

The rebates range form $US5 to $US40 on a variety of Iomega products. More information about the rebates can be found at

http://www.iomega.com/rinaldi/index.html/.

Ioemga proposed that the rebates be valid for six months from their date of issue and be redeemable at the company's online store or qualified retailers.

The settlement will not be completed until the court reviews the proposal in June, the court documents show.

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Ashlee Vance

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