Most of the claims have been filed since Nov. 5, when U.S. District Judge Thomas Penfield Jackson declared Microsoft a monopoly, finding the Redmond, Washington, company used its dominance in personal computer operating systems to squelch competition and innovation. Jackson's preliminary findings in the antitrust case brought by the U.S. Justice Department and 19 states spawned the growing wave of private lawsuits.
Should Jackson make a formal legal ruling that Microsoft is a monopoly and broke antitrust laws to protect its dominance, the private lawsuits would get a boost, possibly exposing Microsoft to hundreds of millions of dollars of damage claims.
The goal of the lawyers representing 30 private firms at the meeting was to form a "unified front" of plaintiffs against Microsoft, said Stanley Chesley, a Cincinnati lawyer who helped spearhead class-action lawsuits against tobacco companies.
Chesley and other leading plaintiffs lawyers gathered at the law offices of Cohen, Milstein, Hausfeld and Toll in Washington to discuss a coordinated strategy for pursuing the cases. Chesley, Michael Hausfeld and others in attendance at today's meeting have played lead roles in major class-action consumer cases.
Hausfeld's firm recently negotiated a $1.17 billion settlement with Roche Holding and five other vitamin producers who participated in a worldwide price-fixing conspiracy.
One leading plaintiffs' lawyer who wasn't in attendance is Seattle lawyer Steve Berman. He was recently retained by Microsoft to help defend the class-action lawsuits.
Microsoft spokesman Jim Cullinan said Berman "brings great experience in handling these types of litigation and will provide valuable counsel and help to our legal team."
Berman, a veteran of the tobacco lawsuits, once sought to file a class-action lawsuit against Microsoft over Windows 95. The case was dismissed after a judge refused to certify it as a class action, Cullinan said.
Chesley said 70 private antitrust cases had been brought in state and federal courts, though Cullinan said he was aware of only about 50 lawsuits that had been served on the world's largest software company.
The class-action lawsuits seeking monetary damages mostly have been filed on behalf of consumers who bought Microsoft's Windows from retailers or other vendors. Only 19 states allow such antitrust damage claims by indirect purchasers. Under federal antitrust law, only individual consumers or companies who purchase products directly from a manufacturer may seek damages.
Among the private suits, there are now 12 direct-purchase claims against Microsoft, plaintiffs lawyers said. These suits purport to represent consumers who purchased software directly from Microsoft, either from a Web site or by mail. They are designed to include computer makers such as Compaq Computer and Dell Computer.
None of the cases has been certified as a class action. A panel of seven federal judges has been asked to consolidate 20 cases for the purposes of pre-trial motions in either Columbus, Ohio, East St. Louis, Illinois, or Washington, lawyers said.
The claims center on two allegations: That Microsoft's monopoly power enabled it to overcharge consumers for Windows, or that the company illegally tied the sale of its Internet Explorer Web browser to the purchase of the operating software.
In the government's case, Jackson's factual findings foreshadow such a legal ruling, though he is not expected to issue an opinion until March at the earliest, after hearing legal arguments from both sides.
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