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Toshiba Settles Federal Case

Washington – Toshiba has resolved allegations that it sold defective laptop computers to various U.S. government agencies, paying $23 million, according to the U.S. Justice Department. The department reported Toshiba will also provide the government with $10.5 million in coupons for the purchase of Toshiba products as part of the settlement of the class-action lawsuit filed in federal court in Texas.

According to the Justice Department, the settlement frees Toshiba from liability under the False Claims Act for the sale of the computers. The case centered around allegations that a defect in the floppy disk controllers periodically caused undetected data corruption when data was being transferred to and from a floppy disk. The problem was said to worsen when multiple software applications were running.