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        for news on a 8 billion lawsuit against AOL/TimeWarner check out
        http://www.cnn.com/2000/TECH/computing/02/02/aol.lawsuit.02/index.html



        Disgruntled AOL 5.0 users seek up to $8 billion in damages

        February 2, 2000   Web posted at: 12:44 p.m. EST (1744 GMT)

        From staff and wire reports

        WASHINGTON (CNN) -- Charging that America Online's new Internet
        software creates serious difficulties for people trying to use
        other Internet service providers, a class-action lawsuit calls
        for up to $8 billion in damages for those who have downloaded
        the upgrade.

        AOL spokesman Rich D'Amato said Wednesday the lawsuit "has no
        basis in fact or law." Top company officials said that customers
        agree to specific conditions when they install version 5.0 of
        AOL's Internet software, and that the new software offers
        improved features and a stable Internet environment.

        AOL has said previously that complaints about interference by
        its software were overblown. But some AOL customers and
        competitors contend the product also damages computer programs
        unrelated to Internet service.

        The suit, alleging a deceptive trade practice and violation of
        computer-tampering laws, seeks damages of up to $1,000 for each
        of the approximately 8 million people who have downloaded the
        software.

        The civil action was filed earlier this week in U.S. District
        Court in Alexandria, Virginia, near AOL's corporate
        headquarters. It follows scores of complaints lodged by
        customers of the online service about problems they encountered
        after installing version 5.0.

        AOL has encouraged users to install its latest Internet
        software. It has "many new additions under the hood to make it
        just easier for consumers to get connected and enjoy the online
        experience," said David Gang, an AOL vice-president.

        'A beast to fix'

        But those changes "under the hood," which can alter a user's
        existing files and settings, have caused some serious
        frustrations.

        "As soon as I installed that it started crashing, started
        locking up. It started just having a realm of unknown problems,"
        said Danny Brown, owner of the Computer Handyman.

        From chat rooms to computer repair shops, there are warnings
        about how the upgrade can wreak havoc on unrelated computer
        programs. People who have installed it say undoing the damage
        can be difficult.

        "Even for some of the real networking pros, this thing can be a
        beast to fix," said Doug Barney, a columnist for Network World
        magazine.

        Customers must agree to the changes when they install 5.0, AOL
        responds.

        "AOL does ask you if you want us to be your default connection
        to the Internet. And when you select yes, we set up in
        conjunction with what windows software allows you to do, your
        default online experience."

        Some computer professionals say that really means that AOL takes
        over a user's machine. Experts agree that 5.0 can provide a more
        stable Internet experience for customers who use only AOL
        services.

        Prodigy exec is furious

        But computer technicians say the upgrade can interfere with many
        other programs -- Internet related or not -- including e-mail,
        games and financial software like Quicken.

        The most serious problems seem to affect AOL users who have a
        second Internet service provider. About 8 percent, or 1.6
        million, of AOL's 20 million customers have a second ISP.

        The chief technology officer of a major ISP competitor is
        furious.

        "They really haven't told the user, 'I'm going to disable your
        other ISP's, I'm going to delete information from your machines,
        and I'm going to make it impossible for you to get back on
        without uninstalling software and re-installing software,'"
        Prodigy's Bill Kirkner said.

        Some computer professionals simply advise against upgrading. "As
        a common rule here in the shop we will not install 5.0 because
        it is a very unpredictable program," said Mark Yerkes, a repair
        technician.

        Microsoft-like backlash next?

        Because of the 5.0 troubles, AOL risks customer resentment
        similar to that faced by Microsoft, analyst Doug Barney said.

        "Microsoft software often times will take over your computer and
        will interfere with some other vendors products," he said. "And
        Microsoft has had its reputation tarnished by these types of
        reports. AOL is in danger of doing the exact same thing and
        having the exact same harm done to its reputation."

        AOL said it constantly improves its Internet software, but for
        now has no plans to change its current 5.0 version. AOL has
        announced a planned merger with Time-Warner, the parent company
        of CNN.

        CNN correspondent Marsha Walton and the Associated Press
        contributed to this report.


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