Colorado Lawsuit Targets AOL For Damaging Users' Computers; Class-action claims AOL 5.0 forces customers to use AOL only

Business Wire, March 9, 2000

Business/High Tech Editors

DENVER--(BUSINESS WIRE)--March 9, 2000

America Online (NYSE:AOL), the world's largest Internet service provider, is again the target of a class-action lawsuit for its latest version AOL 5.O, claiming the company's latest version causes damage to users' computers.

Today, AOL was hit with a new class-action lawsuit in Colorado, citing a recently enacted federal law designed to safeguard online communications.

The proposed class-action lawsuit filed in Federal Court in Denver, Colorado, claims that AOL violated federal electronic communications law by releasing software that, without adequate warning, made major configuration changes to users' computers. The lawsuit contends that AOL failed to inform AOL 5.0 users that the program would make dramatic changes to their computers' operating systems and would interfere with their ability to connect to the competing ISP networks.

Seattle attorney Steve Berman, known for his national expertise in class-action lawsuits, filed the lawsuit on behalf of all Colorado residents using AOL 5.0 under the Stored Wire and Electronic Communications and Transactional Records Access Act. The recently enacted law prohibits illegal altering, modifying or reconfiguring electronic communications files.

The lawsuit was brought by EZ Bookings Inc., a Steamboat Springs, Colorado, company. According to the complaint, Xavier N. Reyna, president of EZ Bookings and a professional computer consultant, spent more than 20 hours unraveling and fixing files corrupted by installing AOL 5.O on his firm's computer.

"My client dug in and began looking at what AOL did to his system and was floored," attorney Berman said. "He discovered that AOL 5.0 went in and changed the Windows registry, which is the most complex segment of the operating system -- the DNA of the machine."

"To think that AOL's software -- without warning or permission -- put its corporate thumb-print right in the middle of the registry is unbelievable," he added.

According to Berman, AOL 5.0 is a brazen attempt to force consumers to use AOL. "Once the software is up and running, it changes so many of the system's configurations, the average user has no hope of connecting with anyone else other than AOL," said Berman. "Many who have tried to unwind the installation found that it is almost impossible since AOL 5.O affects more than 2000 files. This activity in our view is unlawful."

The class, if approved, would represent all AOL users in Colorado 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 Ligget 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, visit www.hagens-berman.com

ED 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