SFMS Announces Preliminary Approval Of Settlement In The Gateway, Inc. Memory Class Action

December 17th, 2008

Shepherd, Finkelman, Miller & Shah, LLP announces that on December 12, 2008, the United States District Court for the Central District of California, the Honorable Stephen V. Wilson presiding, preliminarily approved a settlement in a consumer class action, which was filed on behalf of Plaintiff, Eugene Rosenfeld. The Court approved the parties’ Settlement Agreement dated November 18, 2008. For settlement purposes, the Court preliminarily certified a class consisting of all persons or entities who purchased, not for resale, one of the Notebook Computers in the United States (“Class”). The Notebook Computers are defined as the Gateway CX210X, CX210S, M285E, M285G or M7225C, as well as the Gateway M7309H, M153XL and DX42X model notebook computers. Pursuant to the settlement, Class members who were unable to utilize the Notebooks in the manner that they intended because they were unable to obtain use of four gigabites (“GB”) of random access memory (“RAM”) are entitled to return their Notebooks and obtain full reimbursement of the prices paid for the Notebooks and any RAM purchased to upgrade the Notebooks (up to $2,700 per Notebook), which maximum recovery is based upon the highest amount that Class Members generally paid for the Notebooks ($2,500) and the highest amount that consumers reasonably should have paid for extra RAM ($200) to upgrade to 4 GB of RAM. The Settlement also provides that Class Members who purchased RAM to upgrade their computers to 4 GB of RAM, but who do not choose to return their Notebooks for refund (or otherwise do not qualify for the refund option), will receive reimbursement for fifty percent of the amount that they paid to upgrade to 4 GB of RAM (up to a maximum recovery of $100), based upon the fact that the Notebooks indisputably could access at least 3 GB of RAM and based upon the maximum amount that consumers reasonably should have paid for 2 GB of extra RAM ($200) during the pertinent time period. Finally, the Settlement provides that Class Members who choose not to seek relief under either of the first two categories (or otherwise do not qualify for relief) will receive one of five items free of charge from Gateway. Notice and Proof of Claim Forms will be mailed via e-mail or first class mail to the Class on or before January 8, 2009. The notice will also be published on or before January 8, 2009. A final settlement fairness hearing has been set before the Court for March 16, 2009.

For a copy of the Court’s Order Preliminarily Approving the Settlement, please click here.

For a copy of the Parties’ Settlement Agreement, please click here.

If you have questions concerning the settlement, please contact James E. Miller (1-866-540-5505; jmiller@sfmslaw.com) or Nathan Zipperian (1-877-891-9880; nzipperian@sfmslaw.com).