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

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To: jack rand who wrote (1055)1/14/1997 8:50:00 PM
From: Johnathan R. Bowden   of 13594
 
I know of several AOL subscribers at work who have been complaining about access problems lately. I tell them to try an ISP and call me in the morning.....

Speaking of suits, and I don't mean the cheap kind either, here's an exerpt from todays WSJ:

Suit Claims America Online Service Inadequate

LOS ANGELES (AP)--A lawsuit filed against America Online (AOL) claims the Internet service provider offered a new price
plan boosting the number of users even though it was unable to handle the increased load.

The lawsuit, filed in Superior Court on Monday, said AOL subscribers have encountered ''busy and unavailable phone lines
and/or inaccessible computer equipment'' since the company began offering unlimited access for a $19.95 fee at the
beginning of the year.

The lawsuit, which seeks class-action status, was brought by Richard Basch, Robert Friedland, Jeffrey Rayden and James
Kranz of Los Angeles County and Jason Cartwright of San Diego County, said their attorney, Louis Marlin.

Marlin said Tuesday his clients were unhappy with AOL because it has become increasingly difficult to obtain dial-in access.

''They try over and over and over again to try and get in and they get a constant busy signal. One client tried 26 times the
other night,'' Marlin said.

The plaintiffs, claiming negligence and consumer fraud, are seeking at least $20 million in compensatory damages as well as
punitive damages and attorney fees.

Marlin said that figure is only a minimum estimate ''to give warning to the other side that we are seeking significant monetary
damages.''

The suit also asks for a court order stopping AOL from selling any more flat-fee, unlimited-access service until there is
''sufficient equipment'' to handle the increased amount of users.

Regards, John
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