Printer Friendly

COURT APPROVES AGREEMENT IN IBM VS. COMDISCO LITIGATION

       COURT APPROVES AGREEMENT IN IBM VS. COMDISCO LITIGATION
    ROSEMONT,  Ill., Nov. 6 /PRNewswire/ -- Comdisco, Inc. (NYSE: CDO) announced today that The United States District Court for the Northern District of Illinois approved an agreed order regarding memory modification practices.  The agreement was presented to the court by both parties in a lawsuit filed by IBM against Comdisco on Oct. 24, 1991.  The lawsuit alleges misrepresentation of modified IBM memory boards to customers by Comdisco.  On Oct. 28, 1991, the court ordered both parties to meet in an attempt to negotiate a business solution to this matter.
    Speaking for Comdisco, Kenneth N. Pontikes, chairman of the board and president, stated, "IBM's tactics of inflammatory rhetoric, negative media blitz and completely unprofessional conduct in spreading fear, uncertainty and doubt among the end user community is more a characterization of IBM than an indictment of Comdisco.  We felt strongly that this was not an emergency situation that required injunctive relief.  We are pleased that his agreed order which was attained through negotiation, was approved by the court.  It is our belief that this agreement is in the best interest of all parties."
    In the court order, Comdisco agrees that in connection with the sale, lease or other marketing of computer memory cards, Comdisco will not represent that any memory cards have been manufactured by IBM, have been maintained by IBM in their present form or that Comdisco believes the memory cards are eligible for IBM maintenance unless those representations are true.  Further, with respect to any modified memory card which bears the IBM logo, Comdisco will label and disclose that the memory card was not manufactured by IBM, maintained by IBM in its present form, or that it is eligible for IBM maintenance.
    Also, with respect to any customer to whom Comdisco has sold, leased or marketed any memory card where inaccurate representation and disclosure was made, Comdisco will promptly notify each such customer as well as IBM, in writing, as to any inaccuracies.
    The company stated that it wrote IBM on Jan. 18, 1991 advising IBM that modified memory was available for the IBM 3090 mainframe.  Comdisco requested that IBM provide in writing the procedures necessary to ensure Comdisco that modified memory would be eligible for IBM maintenance. When IBM would not formally agree that it would maintain modified memory, Comdisco stopped knowingly marketing modified memory for sale or lease.
    Stated Robert A. Bardagy, executive vice president, "Prior to the suit, we never heard from our customers of a single reliability problem with any of the modified memory we sold or leased.  IBM has implied that modified memory is inherently unreliable, yet they have offered no facts to back up this claim."
    Comdisco stated that it has contacted every customer to whom it knowingly provided modified memory and presented them with a number of options regarding replacement of their modified memory.  Comdisco issued a separate press release last week explaining their modified memory policy.
    Comdisco remains steadfast in its belief that IBM's motives are anti-competitive in nature.  Concluded Bardagy, "IBM needs to remember what the foundation of a free market economy is: competition. Regardless of what IBM may say, I feel certain the end result they have in mind is to eliminate anyone and everyone who competes successful against them."
    Comdisco is engaged primarily in buying, selling and leasing new and used computer equipment, communications and other high technology equipment.  The company, through a wholly owned subsidiary, provides disaster recovery services for computer users.  Comdisco's common stock is listed on the New York and Midwest Stock Exchanges.
    -0-        11/6/91
    /CONTACT:  James J. Hyland of Comdisco, 708-698-3000/
    (CDO IBM) CO:  Comdisco Inc.; International Business Machines Corp. ST:  Illinois, New York IN:  CPR SU: SH-KW -- NY069 -- 1851 11/06/91 15:55 EST
COPYRIGHT 1991 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1991 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Nov 6, 1991
Words:631
Previous Article:COLUMBIA REAL ESTATE INVESTMENTS REPORTS EARNINGS
Next Article:800,000 DATEQ INFORMATION NETWORK INITIAL COMMON SHARES OFFERED AT $10 PER SHARE
Topics:


Related Articles
COURT APPROVES AGREEMENT IN IBM VS. COMDISCO LITIGATION
COURT ORDER BARS COMDISCO FROM PASSING OFF ANY MORE COUNTERFEIT IBM MEMORY CARDS
COMDISCO ANNOUNCES SECOND QUARTER AFTER-TAX CHARGE OF $48 MILLION; RESTRUCTURES BUSINESS ORGANIZATION AND FOCUS
COMDISCO RESPONDS TO IBM ALLEGATIONS REGARDING EQUIPMENT SUBLEASING
COMDISCO, INC. REPORTS THIRD QUARTER EARNINGS FROM CONTINUING OPERATIONS OF $17 MILLION, OR $.41 PER SHARE, ON REVENUES OF $561 MILLION
Wolf Haldenstein Adler Freeman and Herz LLP Announces Commencement Of Class Action Suit Against Comdisco, Inc.
The Law Firm of Milberg Weiss Announces Class Action Lawsuit Against Comdisco, Inc.
Milberg Weiss Announces The Filing Of A Class Action Suit on Behalf Of Purchasers of Comdisco Inc., Securities.
Spector, Roseman & Kodroff, P.C. Files Class Action Suit Against Comdisco, Inc.
Management Group Plans to Submit Bid to Buy Comdisco IT Leasing Business.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters