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AOL OFFERS FREE TIME TO SETTLE SUITS.


Byline: Steve Lohr The New York New York, state, United States
New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of
 Times

America Online See AOL.  Inc. will give away millions of hours of on-line time to some subscribers to settle a series of lawsuits, lawyers involved in the litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute.

When a person begins a civil lawsuit, the person enters into a process called litigation.
 said Friday.

The agreement is intended to settle 11 class-action suits Noun 1. class-action suit - a lawsuit brought by a representative member of a large group of people on behalf of all members of the group
class action
 against America Online for alleged improper billing practices.

Max W. Berger of New York and other lawyers representing America Online customers said the settlement had received preliminary approval by the San Francisco San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden  Superior Court.

Final approval, the lawyers said, is expected after America Online customers are notified and a public hearing is held in San Francisco.

Customers of America Online between July 15, 1991, and March 31, 1996, may be eligible to receive some free on-line time or cash compensation. But, Berger said, it will be mainly heavy users of the service during that time who will benefit.

Anyone using America Online for five hours or less pays the monthly minimum charge of $9.95. Only customers charged more than the minimum amount, Berger explained, qualify as members of the ``overcharged'' class.

Industry analysts estimate that 60 percent of America Online's 5 million subscribers use the service for less than five hours a month.

Under the settlement, all members of the affected class who are America Online subscribers when the free time is given out will receive one free hour of on-line time. In addition, subscribers who paid the company more than $300 during the time covered by the settlement will receive additional free time.

Former subscribers who paid at least $300 in the settlement period will be eligible for cash compensation. But the total payout pay·out  
n.
1. The act or an instance of paying out.

2. A percentage of corporate earnings that is paid as dividends to shareholders.
 by America Online as part of the cash settlement process will not exceed $500,000.
COPYRIGHT 1996 Daily News
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1996, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Title Annotation:Business
Publication:Daily News (Los Angeles, CA)
Geographic Code:1USA
Date:Jul 6, 1996
Words:285
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