New York, NY: (Jan-23-08) A class action lawsuit was brought against Palm Inc. over the Treo 600 and 650 smartphones. The suit stated that the two devices had certain defects, failed at unacceptable rates, and that Palm made misrepresentations concerning the Treo 600 and Treo 650 smartphones. Though Palm, Inc. denies all allegations and has asserted many defenses, the company agreed to resolve the class action by reaching a settlement with class members.
Under the deal, class members who purchased a Treo 600 or Treo 650, experienced two or more repairs or replacements, are entitled to warranty repairs and rebates. Company officials claimed that Palm agreed to provide a cash rebate to class members who purchased a new Palm smartphone within a defined time period, and who send in a valid claim form. The settlement provides for different rebate payments depending on whether they purchased a Treo 600 smartphone ($75) or a Treo 650 smartphone ($50) requiring repairs or replacements. The settlement is not an admission of liability, but a means to end costly litigation. [