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Schools net funds from Microsoft settlement

NASHVILLE — Tennessee schools, including the Scott County School System and the Oneida Special School District, will receive some $15.3 million in software vouchers as a result of a settlement between Microsoft Corporation and the State of Tennessee, Education Commissioner Lana Seivers announced Monday.

The class action lawsuit against Microsoft had alleged that the company used unlawful trade practices to maintain a monopoly and overcharge Tennessee consumers.

“We are pleased that the outcome will allow Tennessee school systems to upgrade technology for the benefit of their students and allow additional resources to be directed toward improving teaching and learning,” Seivers said.

Each school district in the state will receive approximately $16.40 per student according to the district’s average daily membership at the end of the 2005-2006 school year. Local administrators are permitted to use the vouchers for current or future Microsoft operating system software such as Microsoft Windows, Microsoft Office applications, encyclopedia software and certain non-Microsoft software.

The Scott County School System will receive $43,423.74, while the Oneida Special School District will receive $21,457.41.

The total payout is $15,315,586.25.

“The department (of education) is working diligently to help districts take advantage of these vouchers in a timely manner,” Dr. Tim Webb, assistant commissioner for resource and support services, said.

Tennessee attorneys James Stranch, of Branstetter, Stranch & Jennings, PLLC, and Ted Carey, of Barrett, Johnston & Parsley, handled Tennessee’s case, which was one of the first cases to be filed against Microsoft Corporation and has resulted in one of the stronger settlements nationwide.

In surrounding school districts, Anderson County received $112,888.83 in funding, while Campbell County received $98,088.60, Fentress County received $37,727.65, Morgan County received $53,570.47 and Pickett County received $11,086.93.

The funding to the Department of Education represented half of the settlement funds that were unclaimed after the settlement claim filing deadline of August 1, 2005. The settlement was reached in 2003.

Quick Facts

  • The money being paid to schools by the Department of Education represents 50% of unclaimed settlement funds paid by Microsoft to the State of Tennessee as the result of a 2003 settlement.
  • The settlement nets $43,423.74 for Scott County schools and $21,457.41 for the Oneida Special School District.
  • Statewide, each school system was awarded an average of $16.40 per student in the system based on 2005-2006 average daily attendance, for a grand total of $15.3 million.

Quotable

    "We are pleased that the outcome will allow Tennessee school systems to upgrade technology for the benefit of their students and allow additional resources to be directed toward improving teaching and learning."

    -- Lana Seivers
    Education commissioner

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