PC World: Iomega Ends Legal Battle With Rebate Offer. While the vendor denied any problems with its products, it agreed to settle the lawsuit filed in a Delaware district court by paying its opponents’ court fees of $4.7 million, donating Zip drives and disks worth $1 million to schools, and awarding affected users the rebate.
In other words, the affected customers get almost nothing of value while the lawyers scamper away with millions.
Companies know perfectly well that most customers don’t send in rebate coupons. And tech companies in particular are known for their reluctance to actually send the rebate checks. Consumer protection agencies are constantly hearing from people who didn’t get the promised rebate in a timely way, if ever.
This kind of settlement brings shame to the legal profession.