Settlement Plan Axed In Palm Data Loss Class Action

Law360, New York (May 23, 2011, 3:53 PM EDT) -- A California federal judge refused Friday to approve a $640,000 settlement in a proposed class action accusing Palm Inc. and Sprint Spectrum LP of violating a contract and causing their customers to suffer "catastrophic data loss."

U.S. District Judge Lucy Koh ruled that the deal would offer virtually no relief to 99.5 percent of the more than 2 million settlement class members in the U.S. who own Palm webOs-based cellphones, including the Palm Pre, and who created profiles and stored data on Palm's servers through so-called...
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