Into the next stage, a class-action lawsuit

Feb 25, 2008 12:33 GMT  ·  By

Windows Vista may yet prove to be more trouble than it's worth for Microsoft. Back in 2006, general availability of Vista was postponed until January 31, 2007, but in order to keep PC sales high throughout the holiday season, Microsoft came up with the Capable and Premium labels designated to indicate the machines tailored either for the most basic version of the latest Windows client, the Home Basic edition, or the feature-rich Home Premium, Business and Ultimate SKUs. The Redmond company was subsequently sued by customers who bought Windows Vista Capable machines only to discover that they were stuck with Vista Home Basic, no Aero, no Flip3D, none of the features that, at least on the surface, make Vista an evolved operating system in comparison to XP.

Microsoft has argued that Home Basic is indeed an edition of Windows Vista, even though it lacks the signature features of the other SKUs of the platform. However, at this point in time, the plaintiffs have scored one against the Redmond company after a federal judge in Seattle granted class-action status to the Vista Capable lawsuit at the end of the past week.

"The Court GRANTS Plaintiffs' motion for application of Washington law and GRANTS Plaintiffs' motion for class certification. The Court concludes that class certification is appropriate and Washington law governs the class's claims. The Court limits, however, class membership and the theory on which Plaintiffs may bring their class claims. The named plaintiffs may not represent a class that includes members who claim injuries based on participation in the 'Express Upgrade' program, unless they amend their complaint to add a named plaintiff who participated in the program," U.S. District Judge Marsha Pechman stated.

Microsoft responded to the court's decision by revealing that it was reviewing the ruling. The company remains confident in successfully proving that it has offered customers an array of Vista editions each fitted to machines with specific and different price points. The plaintiffs' lawyers have a month to add more frustrated Vista Home Basic users that acquired Vista Capable machines to the lawsuit.

"Plaintiffs may not bring a Washington Consumer Protection Act or unjust enrichment claim on the theory that Microsoft's deceptive advertising induced consumers to purchase PCs that they would not have otherwise purchased. But Plaintiffs may bring their class claims on a 'price inflation' theory, i.e. that Plaintiffs paid more than they would have for their PCs had Microsoft's 'Windows Vista Capable' marketing campaign not created artificial demand for and/or increased prices of PCs only capable of running Vista Home Basic," U.S. District Judge Marsha Pechman concluded.