A settlement has been reached in a class action about Dell desktop and notebook computers with at-home service contracts sold in California and Arizona.
A class action settlement has been reached in a class action lawsuit pending against Dell Inc., Banctec, Inc., Worldwide TechServices, LLC (formerly known as QualxServ, LLC), Dell Catalog Sales, L.P., Dell Products, L.P., Dell Marketing L.P., Dell Marketing L.P., LLC, and Dell USA, L.P. (collectively “Defendants”) in the United States District Court for the Northern District of California (styled Fiori et al. v. Dell Inc. et al., Class Action Case No. 09 CV 01518 JW) alleging, among other things, that Defendants engaged in wrongful conduct by failing to disclose that there was a cost for the first-year at-home service contract and by representing that at-home service would occur on the next business day after a customer initially requested service from Dell, according to the Dell At Home Service Contract Class Action Settlement Notice.
The Dell At-Home Service Contract class action lawsuit settlement class reportedly includes the following persons, unless otherwise excluded:
All individual consumers in California and Arizona who purchased a Dell notebook or desktop computer with an at-home service contract directly from Dell between January 1, 2000 and July 31, 2010.
A service contract is reportedly a written agreement, in addition to and separate from the limited warranty for the computer system, whereby Dell Inc., Banctec, Inc. or WorldWide TechServices, LLC (formerly known as QualxServ, LLC) agreed to provide at-home repair or replacement service. An extended service contract is reportedly a service contract for athome
repair or replacement that is longer than one year.
The Dell At Home Service Contract class action lawsuit settlement reportedly provides that Defendants will provide either a $10, $8, or $4 cash benefit to Class Members who timely (by May 20, 2011) submit Valid Claim Forms. Potential cash benefits reportedly total over $30 million in eligible claims made benefits.
Under the class action settlement agreement, Dell will also reportedy implement the following changes to their sales practices:
a. Invoices and acknowledgments sent to consumers will not list $0 next to Service Contracts that are sold with the computer system;
b. The price of a Service Contract sold with a computer shall be disclosed to consumers in the invoice, acknowledgement, Service Contract, or accompanying documentation; and
c. Dell will disclose pricing information for Service Contracts for its computers on its website and by telephone.
These changes will remain in effect for a period of at least two (2) years.
The Court has scheduled a Fairness Hearing at 9:00 a.m. on March 21, 2011 at the United States Courthouse, 280 South 1st Street, San Jose, CA 95113, in Courtroom 8 to consider, among other things, whether the Dell At Home Service Contract settlement is fair, reasonable, and adequate.
For more information about the Dell At Home Service Contract class action lawsuit settlement, including information about how to participate in, be excluded from (or opt out of) or object to the Dell class action settlement, visit the Dell At Home Service Contract class action settlement website:
www.servicecontractsettlement.com
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