Avaya has settled a Y2K-related legal battle over claims that certain telecoms products might not process date functions correctly when their internal clocks switched to 1 January 2000.

The networking company said it has reached a settlement with plaintiffs for the US class action which will allow eligible class members who acquired certain products between 1990 and 1999 to each receive credits of up to $110m or a cash alternative.

According to the company, these credits are valid for a three-year period and can be put towards a 45 per cent discount on purchases of new Avaya products and/or a 30 per cent discount on Avaya maintenance services.

Alternatively, eligible class members may receive a one-time cash payment equal to 25 per cent of the credits to which they may be entitled.

As part of the settlement, Avaya denies any wrongdoing or liability. The parties agreed to the settlement to avoid further costs and uncertainties related to the litigation.

The company assumed liability for the Y2K case as a result of a contribution and distribution agreement between it and Lucent, related to Lucent's October 2000 spin-off of Avaya.

Vnunet

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