PC settlements net millions

PC settlements net millions

Two PC vendors last month agreed to financial settlements with the government for selling allegedly overpriced or defective equipment to agencies.

Toshiba Corp., the parent of Toshiba America Information Systems Inc., settled a class-action suit for $23 million for defective floppy disk controllers in notebook computers that sometimes corrupted data, the Justice Department said.

Gateway Inc. agreed to pay the government $9 million to settle allegations that it failed between 1994 and 1997 to pass along savings, as required, on its General Services Administration schedule sales. When prices fell between ordering and shipment, Gateway did not give the government the reductions, Justice said.

'Patricia Daukantas, Susan M. Menke and William Jackson

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