A judge has approved a $640 million settlement stemming from allegations Compaq and Hewlett-Packard sold computers with a defective part that could corrupt data.

Cleveland County District Judge Tom Luca approved the consolidated class action lawsuit. A hearing was held in Cleveland County District Court last month.

In the agreement, the settling defendants agreed to pay $40 million in attorneys’ fees, independent of the class action settlement, plus $8.25 million in expenses.

The consolidated action in Oklahoma claimed the defendants, Compaq and HP, sold computers with a defective part that could cause the loss or corruption of data written to or read from a floppy disk. The 3.9 million class members will be entitled to remedies under warranty, according to the settlement.

Buddy Pendarvis, an attorney for Compaq and HP, said a preliminary settlement was entered Dec. 11, 2007, followed by notice to the class members.

“It came back for final approval on April 29. At that time, everything was combined from the various jurisdictions and a settlement reached” in combination with other cases, he said.

“Just like with any lawsuit, there was extensive mediation. From Hewlett Packard’s standpoint, we felt it was best to reach a settlement, although we obviously did not admit any liability or wrongdoing,” Pendarvis said.

According to the settlement agreement, the court did not rule in favor of plaintiffs or defendants.

“Instead, the parties agreed to a proposed settlement in order to avoid the expense and risks of continuing the lawsuit,” according to a statement placed on the Barrett/Grider vs. HP/Compaq Settlement Web site, www.barrettgrider-v-hpcompaq.com/index.html.

The settlement provides for benefits to be sent to eligible class members who complete and send in a valid claim form and proof of purchase. If the claim form is approved, owners will receive a redemption certificate that can be used to purchase a new HP or Compaq computer on-line that will come with one year of free telephone technical support.

Tom Blakey writes for The Norman (Okla.) Transcript