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Laptop Battery Microsoft said it settled a longstanding antitrust lawsuit with Gateway for $167 million while boosting reserves $550 to offset charges associated with further antitrust claims.
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Laptop Computers April 11, 2005 (AXcess News) Redmond WA - Microsoft Corp. (Nasdaq: MSFT) said it settled a longstanding antitrust lawsuit with Gateway Computers (NYSE: GTW) for $167 million while boosting reserves $550 to offset charges associated with further antitrust claims.Microsoft also reaffirmed its previous earnings forecast for the quarter but discounted those results for the antitrust claim losses, which before that item was estimated to be 23 cents a share.
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Laptop Computer Terms of the settlement between Microsoft and Gateway were for Microsoft to make four equal payments totaling $150 million over four years in return for Gateway dropping the antitrust law suit.
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Desktop Computer Judge Thomas Penfield Jackson had ruled that Microsoft had damaged Gateway due to its business practices.The settlement resulted from mediation between the two companies.
Notebooks Gateway and Microsoft are also working together on new products and plan to continue in that relationship, which had a bearing on the settlement being reached, the companies said.
Lenovo Gateway intends to spend the cash on advertising, training and new product development, though it did not indicate if that meant Microsoft product development.Shares of Gateway were up 2 cents at $4.10 in late afternoon trading Monday, while Microsoft shares were up 3 cents at $24.97.
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