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Ballmer Must Answer Questions in Lawsuit

Occurred: 11/25/2008

Nov. 24 (Bloomberg) -- Microsoft Corp. Chief Executive Officer Steven Ballmer must answer questions under oath in a lawsuit claiming consumers were misled about which computers could fully run Vista, the company’s current operating system. U.S. District Judge Marsha Pechman in Seattle denied Microsoft’s request to block consumers’ lawyers from questioning Ballmer, ruling that he may have first-hand knowledge of facts relevant to the case based in part on a conversation with Intel Corp.’s top executive. “Plaintiffs point to a phone call between Intel’s CEO, Paul Otellini, and Mr. Ballmer where the executives supposedly discussed a change in the Vista capable requirements,” Pechman said in the Nov. 21 ruling. Microsoft, the world’s biggest software maker, faces an April 13 trial on allegations that, when development of its Vista operating system was delayed, it allowed computer manufacturers to label existing stock as “Vista capable” even though they could run only the most basic version of the system and not a premium edition that provides better graphics. Microsoft, based in Redmond, Washington, began selling its Vista operating system in January 2007. Consumers sued in March 2007. Pechman certified the case as a class-action, or group, lawsuit in February. Intel makes microprocessors that run software and computer chips that store data. The Santa Clara, California-based company controls 81 percent of the market for the processors that run personal computers, according to researcher IDC Corp. in Framingham, Massachusetts. ‘Ballmer’s Knowledge’ “We will of course comply with the court’s order,” Microsoft spokesman David Bowermaster said today in an e-mailed statement. “Mr. Ballmer’s knowledge about the Windows Vista Capable program comes from the executives he empowered to run the program and make decisions, and two of those executives already testified in this case.” The judge limited Ballmer’s deposition to three hours in duration and said it must be conducted within 30 days of her ruling at a place of his convenience. “We believe Mr. Ballmer is a key witness in this case and is, among other things, privy to conversations and decisions that we are entitled to know about,” Mark Wilner, an attorney for the consumers, told Microsoft’s lawyers in a Sept. 26 letter seeking to set a deposition date, that is now part of the court’s file.

Reference/Source: http://www.bloomberg.com/apps/news?pid=20601087&sid=afM4cju6NBv4&refer=home

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