Class Actions Against AOL in Washington, Arizona Joined by Lawsuit in Oregon

Business Wire, March 1, 2000

Business Editors

PORTLAND, Ore.--(BUSINESS WIRE)--March 1, 2000

Latest class-action claims Internet provider forces customers to

use AOL

A recent lawsuit filed against America Online (NYSE:AOL) by Washington and Arizona residents has sparked such a deluge of additional complaints from other states, attorneys representing AOL users yesterday filed a similar complaint in Oregon Circuit Court.

The proposed class-action suit, filed in Oregon Circuit Court in Multnomah County claims that AOL knowingly released a version of their software that, without warning, made major changes to users' computer operating systems rendering them unstable, and in some cases, inoperable. The suit also claims that AOL, the world's largest Internet software provider (ISP), effectively barred their customers from connecting with competing ISPs.

Attorney Steve Berman, known for his national expertise in class-action lawsuits, including negotiating the Oregon Tobacco settlement, filed a lawsuit on behalf of Oregon state residents under the Oregon Unlawful Trade Practices Act and the Oregon Antitrust Act. The Oregon class-action filing comes on the heels of similar lawsuits filed on behalf of AOL users in Arizona and Washington.

"After we filed our initial complaint in Washington, we immediately began receiving hundreds of calls and e-mails from disgruntled AOL users from all across the country asking how they could join the Washington state suit," Berman said. "Today we filed complaints in Oregon and Arizona, but could well expand our efforts to other states," Berman said.

The suit claims the Internet giant failed to divulge to its users that the AOL 5.0 upgrade would make dramatic changes to the users' operating systems and would interfere with the user's ability to connect to the competing ISP networks.

"AOL 5.0 promised users 500 free hours of faster, better Internet access," Berman said. "But in reality, many novice users found that once they installed AOL 5.0, removing the software was nearly impossible. This was a brazen attempt by AOL to hold these customers hostage as long as they wanted to connect to the Internet."

According to Berman, AOL 5.0 is perhaps the most insidious way the company could force consumers to use AOL. "Once the software was up and running, it changed so many of the systems configurations, the average user had no hope of connecting with anyone else other than AOL. Many who tried to unwind the installation found that it was almost impossible since it affected more than 200 files."

The class, if approved, would represent all AOL users in Oregon who subscribe to the service and installed AOL 5.0. According to Berman, the exact number of people affected by this is yet unknown, but could number in the tens of thousands.

Berman is managing partner of Hagens Berman. Berman's practice is focused on securities, antitrust, ERISA, and consumer and environmental matters, with a heavy emphasis on class actions. Berman represented 13 states, in suits against Big Tobacco, and was one of the prime architects of the groundbreaking Liggett settlement. Other class actions the firm handled include matters involving The Boeing Company, the Exxon Valdez oil spill, Egghead, Nordstrom, Boston Chicken, Noah's Bagels, Louisiana Pacific and Washington Public Power Supply (WPPSS).

For more information about this lawsuit or to learn how to join the action, please visit www.hagens-berman.com.

EDITORS NOTE: Accredited media may request copies of the complaint or to arrange interviews with plaintiffs or counsel by contacting Mark Firmani at 206/443-9357 or mark@firmani.com.