AOL 5.0 Causes System Disaster, Hagens Berman LLP Claims; Class-action claims Internet provider forces customers to use AOL.

Business Editors, Legal/High-Tech Writers

SEATTLE--(BUSINESS WIRE)--Feb. 24, 2000

Many Washington state residents who installed the latest version of America Online (NYSE:AOL) to surf the Internet are finding themselves drowning in software problems, according to a class action lawsuit filed today in Washington state.

America Online, the suit claims, knowingly released a version of their software that, without warning, made major changes to users' computer operating systems rendering them unstable, and in some cases, inoperable. The suit also claims that AOL, the world's largest Internet software provider (ISP), effectively barred their customers from connecting with competing ISPs.

The suit, filed today in King County Superior Court, claims the Internet giant failed to divulge to its users that the AOL 5.0 upgrade would make dramatic changes to the users' operating systems and would interfere with the user's ability to connect to the competing ISP networks.

Seattle attorney Steve Berman, known for his national expertise in class-action lawsuits, filed a lawsuit on behalf of Washington state residents under the Consumer Protection Act.

"Users who installed AOL 5.0 expected that they were going to get 500 free hours of faster, better Internet access," Berman said. "But what really happened was that their computers were unknowingly sabotaged so that they could no longer use any Internet service other than AOL. This was a brazen attempt by AOL to hold these customers hostage as long as they wanted to connect to the Internet."

According to Berman, AOL 5.0 is perhaps the most insidious way the company could force consumers to use AOL. "Once the software was up and running, it changes so many of the systems configurations, the average user had no hope of connecting with anyone else other than AOL. Many who tried to unwind the installation found that it was almost impossible since it affected more than 200 files."

The class, if approved, would represent all AOL users in Washington State who subscribe to the service and installed AOL 5.0. According to Berman, the exact number of people affected by this is yet unknown, but could number in the tens of thousands.

Berman is managing partner of Hagens Berman. Berman's practice is focused on securities, antitrust, ERISA, and consumer and environmental matters, with a heavy emphasis on class actions. Berman represented 13 states in suits against Big Tobacco, and was one of the prime architects of the groundbreaking Liggett settlement. Other class actions the firm handled include matters involving The Boeing Company, the Exxon Valdez oil spill, Egghead, Nordstrom, Boston Chicken, Noah's Bagels, Louisiana Pacific and Washington Public Power Supply (WPPSS).

For more information about this lawsuit or to learn how to join the action, please visit www.hagens-berman.com.

ED NOTE: Accredited media may request copies of the complaint or to arrange interviews with plaintiffs or counsel by contacting Mark Firmani at 206/443-9357 or [e-mail]