Christina Spicer  |  July 18, 2014

Category: Consumer News

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Intel class action settlementEarlier this week, the plaintiffs in the Intel Pentium 4 class action lawsuit filed a motion supporting Intel Corp.’s proposed settlement in which Intel agrees to pay each Class Member $15.

In March 2004, Janet Skold filed a class action lawsuit in California state court against Intel Corp. and Hewlett-Packard Co. accusing the computer companies of misrepresenting the performance capabilities of Intel’s first-generation Pentium 4 processor. Skold alleged that the companies falsely advertised their Pentium 4 Microprocessors by writing tests that would result in the processors receiving higher scores, paying software companies to inflate the scores, and by disabling features on the previous model to make the new model look better.

After nearly a decade of litigation in this class action lawsuit, including several motions to dismiss and delays in certifying the class, among other things, Skold indicates in her motion that the parties have finally come to an agreement about the computer she purchased in 2002 with an Intel processor. According to Skold’s motion for preliminary approval of the class action settlement offered by Intel, Intel will not admit to any wrongdoing, but, in addition to the $15 awarded to each Class Member, Intel will also give $4 million to a computer and education nonprofit.

“The day before trial was scheduled to begin, the parties agreed to settle and Intel agreed to pay $15 to every U.S. consumer who attests that, to the best of his or her recollection, he or she purchased a computer equipped with a first-generation Pentium 4 processor between November 20, 2000 and June 30, 2002,” says the plaintiff’s motion. “The average price Intel charged for a Pentium 4 during the class period was $160, so the recovery represents roughly 10% of that price and a fair estimate of the price inflation Intel may have achieved by allegedly manipulating the Pentium 4’s benchmark scores.”

“Most importantly,” continues the motion, “consumers who want to participate in the settlement will not need to submit receipts to verify that they did indeed purchase a Pentium 4 computer within the class period … [t]hey will only need to attest under penalty of perjury that, to the best of their recollection, they are a class member—something that they can do very quickly over the internet and based only on their best recollection.”

Further, according to the plaintiff’s motion in support of the proposed settlement, “[t]he total amount of claims is not capped; all class members who submit a valid claim will be compensated for the full amount of $15 per claim.”

The proposed class action settlement will release both defendants, Intel and Hewlett-Packard, from claims against them. “HP is not a party to the settlement,” the plaintiff indicates in the motion, “but as a condition of fully resolving the overriding claims from which any secondary liability on the part of HP stems, Intel required that the class agree to release HP as well.”

Details on how to file a claim for the Intel Pentium 4 class action settlement can be found here in our Open Settlements section.

Plaintiffs and the class are represented by Eric H. Gibbs and Geoffrey A. Munroe of Girard Gibbs LLP and Michael Danko and Kristine Meredith of Danko Meredith.

The Intel Pentium 4 Class Action Lawsuit is Skold, et al. v. Intel Corp., et al., Case No. 05-CV-039231, in the Superior Court of the State of California, County of Santa Clara.

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6 thoughts onIntel Agrees to Settle Pentium 4 Class Action Lawsuit

  1. mari says:

    Just got paid, received 15.00 check today,here Houston TX,thanks tca

  2. Top Class Actions says:

    UPDATE: Details on how to file a claim for the proposed Intel Pentium 4 class action settlement can be found here in our Open Settlements section.

  3. Tom says:

    I don’t know if that is correct. ““Most importantly,” continues the motion, “consumers who want to participate in the settlement will not need to submit receipts to verify that they did indeed purchase a Pentium 4 computer within the class period.” That sounds like they have not yet started the process of taking claims.

  4. Donald says:

    Is it too late to join this lawsuit?

    1. 5lita5 says:

      PROBABLY — I searched it via the case name and it seems to have been originally opened in 2009(?) and didn’t see ANYTHING about becoming a member …. I’m disappointed too. I think they (topclassactions) could send out notifications of pending still open actions that are available….. I realize it’s OUR responsibility to keep up to date on what’s going on, current & pending, but sometimes I just can’t. I have to accept that even though I might qualify for numerous actions, obviously I’m going to miss some now & then. Have a great day.

      1. Donald says:

        Thanks for the info. Guess we both missed out on this one. Peace.

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