Editor's note: This story was changed on Sept. 16 to reflect the correct name of the quoted professor from the University of California in Berkeley. Opening quote was made by Stephen Barnett and not Norman Spaulding. Wired News regrets the error.
Handheld maker Palm will most likely settle a class-action lawsuit claiming it falsely advertised the true colors of its m130 handheld, legal experts said.
But disgruntled m130 owners will most likely not approve of the outcome, they added.
"It's hard to put a dollar figure on how much you have been damaged because your computer won't do some particular feat you might never ask it to do anyway," said Stephen Barnett, a law professor at the University of California in Berkeley.
Attorneys from the law firm Sheller, Ludwig & Badey in Philadelphia filed the suit in California's Superior Court in Santa Clara County, claiming Palm misled customers into believing its m130 personal digital assistant could support more than 65,000 colors.
Palm admitted earlier this week that the m130 is unable to display the 65,536 colors the company had been advertising since the product came out in March. By using blending techniques, the company can display 58,621 "color combinations -- approximately 11 percent fewer color combinations than we had originally believed" on the m130, said Palm spokeswoman Marlene Somsak.
Palm has 60 days to reply to the lawsuit, said Jonathan Shub, the attorney representing the m130 owners.
Palm could fight the lawsuit and claim, as Barnett said, that not many people need 65,536 colors and haven't and don't notice the 11 percent reduction anyway. Or, the company could settle it.
Most likely, Palm will choose the latter to save face, law professors said.
"Palm is going to have to do something," said Tom Ross, professor of law at the University of Pittsburgh. "Palm can't afford to have a lot of adverse publicity around this story. The PDA market is already slipping."
However, Ross doubted m130 owners would see a substantial financial award or even a refund for the color discrepancy. Ross said he has seen many class-action lawsuits where attorneys will walk away with generous attorney fees while their clients are left with little more than a handshake.
He didn't expect a settlement for consumers in this case to be anything more than "some form of coupon or discount on future purchases of Palm products or an offer for free software."
"I'll be shocked if the resolution ends with a check from Palm," he said.
Palm did not return phone calls seeking comment.
Company spokeswoman Somsak said earlier this week that the company was mulling ways to compensate m130 owners, although it didn't plan to offer refunds. The company also issued an apology on its website.
Palm (PALM) shares were down 11 percent to 88 cents at the close of markets on Friday.
