America On-Line: will it survive ...? Message Board

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Technology Stocks : America On-Line: will it survive ...?

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To: Todd Daniels who wrote (1053)	1/14/1997 6:44:00 PM
From: jack rand	of 13594

Speaking of suits................. Frustrated users go after AOL By Reuters January 14, 1997, 3 p.m. PT Frustrated with busy signals, subscribers to America Online (AOL) have filed a class action lawsuit against the online giant for allegedly misrepresenting its service. The suit, filed at the Superior Court of the State of California in Los Angeles on Monday, accuses America Online of offering its subscribers unlimited usage of its services but then not putting enough equipment in place to meet the surge in demand. This has meant that users cannot get connected to the service's network or the Internet. The suit calls this fraudulent and malicious misrepresentation. Officials at America Online could not be reached for comment. Subscribers connect to America Online through modems that use conventional telephone lines. Services include news, electronic mail, "chat rooms," and access to the Internet. The class action includes everyone who pays a monthly rate of $19.95 for unlimited access introduced late last year. The users who filed the suit claim that the "unlimited" usage promise was meaningless since they can barely get on at all.. The plaintiffs claim that not being able to connect subjected them to "unjust hardship" and that America Online acted with "malice" and "fraud" in violation of the California Consumers Legal Remedies Act. The class action is seeking punitive and exemplary damages in amounts appropriate to punish the online service. America Online is the nation's largest online service. Its stock gained $1.38 today to $39.50 in late trading on the New York Stock Exchange. news.com

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