AOL sued over alleged problems with latest software

Wednesday, February 2nd 2000, 12:00 am

By: News On 6

WASHINGTON (AP) -- Lawyers filed a class-action lawsuit against America Online Inc. on behalf of 8 million of its customers, claiming the latest version of its software cripples existing Internet accounts with rival companies. The lawsuit, filed earlier this week in U.S. District Court in Alexandria, Va., near AOL's corporate headquarters, follows scores of complaints lodged by customers of the online service about problems they encountered after installing version 5.0 of AOL's Internet software.

AOL spokesman Rich D'Amato said today the lawsuit "has no basis in fact or law." AOL has said previously that complaints about interference by its software were overblown and the result of customers not understanding that if they click "yes" during installation to allow AOL to become their default Internet browser, AOL largely takes over all the online functions on the computer. "The 5.0 software provides users with the ability to select AOL as their default Internet connection, but only if they make the choice to do so," D'Amato said. "It's designed to provide a more stable online environment, but it doesn't prevent users from accessing the Internet through another provider."

Critics, including other Internet providers that compete directly with AOL, have complained that the new software can suddenly interfere with connections to rival Internet services or business accounts. Part of the legal claims were filed under the auspices of a federal computer crimes law typically cited by U.S. attorneys prosecuting hackers. "That act provides criminal and civil liability on anyone who alters the programs or use of a computer used in interstate commerce," said Lloyd Gathings, a Birmingham, Ala., lawyer involved in the case.

Lawyers have asked the judge to certify as the class the roughly 8 million AOL customers who have already upgraded to the new software. "Obviously, if someone had not suffered damage, principles of fair play would say there is no claim to compensation," said Fritz Schneider, a Maryland lawyer also involved in the lawsuit.

The lawsuit comes just weeks after AOL's announcement of its $145 billion mega-merger with Time Warner Inc., which includes plans to distribute the new software with Time Warner products, including its magazines, which draw 120 million readers.