Feeds

Data-loss lawsuit costs Toshiba $1bn

Floppy drive controllers a little too floppy, it seems

  • alert
  • submit to reddit

Bridging the IT gap between rising business demands and ageing tools

A lawsuit in the US over faults in Toshiba laptops has cost the vendor $1 billion. Toshiba was being sued over the floppy drive controllers (FDC) in its portable PCs in the Federal Court in Texas. Two owners of Toshiba notebooks alleged that a fault in the microcode for the disk controller: "May, under certain circumstances, cause data to be lost or corrupted as it is written to the floppy disk," Toshiba said. The two customers had asked for compensation for breach of warranty and other liabilities. Toshiba said it decided to settle the lawsuit to limit the amount of compensation a trial by jury could award. It added: "Toshiba wants to ensure its customers that the Toshiba brand name merits their trust." The Japanese manufacturer maintained that it had done so without admitting liability or that its notebooks had any technical problems or defects. Toshiba will fit its notebooks in the US with new FDCs from 8 November. Existing customers will get a software patch, "hardware solution", or cash refund. The company also revised its forecast, announced three days ago, for the current fiscal year ending 31 March 2000. It will incur an extraordinary loss of 110 billion yen ($1 billion) in connection with the settlement. This will raise its net loss forecast for the year to 50 billion yen. The settlement was said to affect six million notebooks which Toshiba had shipped in the U.S. since 1985. ®

The Power of One Brief: Top reasons to choose HP BladeSystem

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Nadella: Apps must run on ALL WINDOWS – PCs, slabs and mobes
Phone egg, meet desktop chicken - your mother
White? Male? You work in tech? Let us guess ... Twitter? We KNEW it!
Grim diversity numbers dumped alongside Facebook earnings
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.