October 13, 2000  Toshiba

Toshiba Corporation has agreed to pay $23 Million Dollars to settle allegations that it sold defective laptop computers to federal agencies. The allegations were that the laptops which Toshiba sold to the federal agencies had a defect in their floppy disk controllers, which periodically caused undetected data corruption when the FDC, a microchip located in the computer’s motherboard, was transferring data to and from a floppy disk. The risk of data corruption increased when multiple applications were running simultaneously.

The settlement released Toshiba from liability under the False Claims Act.

See U.S. Dept of Justice Press Release 10/13/00

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