Iomega Proposes Cash Payout To Settle Zip Drive Lawsuit

Iomega Corp., Roy, Utah, USA, proposed a cash payout of .7 million in a settlement regarding alleged defective Zip disk drives, Reuters reported. Iomega would also donate million of its products and services to charity and offer rebates on new purchases of to to anyone who claims to have bought an Iomega Zip drive between the beginning of 1995 and March 19, 2001, the proposal on Iomega's website said. This class-action lawsuit was initiated in September 1998 by a group of purchasers of Iomega's Zip drive products.

According to Reuters, the suit alleges that Iomega drives had a "clicking" problem and other defects and that company advertising was misleading, claims that Iomega denied, saying it was settling the suit to avoid further costs. According to Iomega's website, the Delaware Superior Court will decide on the settlement in June. Those who believe they may qualify as a plaintiff in the lawsuit can find further information on this page.