Due to a flaw in a Japanese-manufactured computer chip, which could potentially cause all the data and information on one's hard drive to be lost, a personal injury lawyer filed an unusual lawsuit. Although the chip-manufacturing company had done extensive testing, and no consumer had ever complained of the chip malfunctioning, it was possible for the lawyer to file a claim of defective manufacturing on behalf of consumers were no problem had actually been recorded in practice. In other words, a lawsuit can be filed in which the plaintiff cites potential, not actual, damages.

The unfortunate computer chip manufacturer had undergone all the required testing, as far as the chip functioning correctly in practice. Although they did not deny or confirm the flaw, they did claim that data loss results have not come up in any of their preliminary testing, nor had any customer complained since the chip had been placed in laptops on the market. Interestingly, this trial was a settlement trial which means that the outcome was determined by the judge mediating between the plaintiffs and defendants, not by a team of jurors.

This has caused many to speculate that the lawsuit was part of an unsavory yet clever plan on the part of the lawyers to earn money from laptop manufacturers through the legal system and proper legal channels. The initial lawsuit was filed for $9 billion in damages but reached a settlement of $2 billion from the laptop manufacturers, as they feared greater losses if the court went to trial. Subsequently a group of lawyers were able to divide amongst themselves an additional $147 million of contingency fees, some of which came in the form of rebates, new laptops and discount coupons redeemable from computer manufacturer.

Certain economists link the already high prices of laptop computers today with the low inflation rate the United States economy has experienced over the last couple of years. They claim that class action lawsuits such as the one described above create layoffs in the computer manufacturing industry and will add to the already elevated prices of personal computers, notebooks and laptops.

These lawyers took a large risk, for if they had lost their case they would have lost billions of dollars. After they won many others the personal injury lawyers filed similar class action lawsuits against five different laptop producers who allegedly used this same faulty chip in their computers.